AIG private equity buys out RMZ’s stake
According to sources, AIG Global Real Estate, a New York-based private equity fund has bought Bangalore-based developer RMZ Corp’s 50% stake in their stalled joint venture mall project in Hyderabad.
RMZ has exited its Rs 53-crore investment in the mall-cum-office project, according to sources. AIG is planning to construct a residential property on the 11 acre plot and is also willing to put in additional capital for developing it. AIG is thinking of launching the project by the first quarter of the next fiscal.
The deal ends as the partners quarreled over whether the project should be residential or for mixed-use. The project was supposed to get completed by early 2012 which never happen. Moreover AIG Global Real Estate India Advisors Rs 350 crore investment also was blocked.
The AIG firm also served a legal notice to RMZ about four months ago and demanded to sell their 50 percent stake in Hyderabad project as compensation. For the payment towards national loss of profit for allowing it to exit the project, RMZ had sought $20 million from AIG.
AIG will build over 1,500 apartments and the price of the apartments will be in between Rs 50 lakh and Rs 60 lakh each, with a total out lay of Rs 1,000 crore.
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