Bangalore-based RMZ exploring ‘special purpose vehicle’ route to expand into other cities
A prospective special purpose vehicle (SPV) route is being explored by Bangalore-based real estate developer RMZ Corp to expand into other cities.
For further expansion, RMZ has apparently set its eyes on Chennai. Moreover, the company is also apparently planning to venture into office space realty by expanding into Mumbai, NCR, and Hyderabad. In fact, the company is already in advanced-stage process to take over realty projects located in the mentioned cities.
About RMZ’s potential expansion plans, the company’s Chairman Raj Menda told Business Line that the strategic expansion of RMZ’s footprint in other cities will also include attempts to increase leased office space to 23 million square feet.
Already, in the past one year, 3.25 million square feet has been leased by RMZ under ‘Ecoworld’ campus, out of a total 5.75 million square feet of office space development.
About RMZ’s modus operandi for expansion, Menda said that the company is presently putting in place SVPs which have been chiefly designed with the aim of taking in capital from sovereign wealth funds. In addition, Menda also said that RMZ also plans to work on “exit route through an REIT in the next two years.”
Menda further added that once RMZ successfully acquires projects in located in Chennai, NCR, Mumbai and Hyderabad markets, it will gain the capability “to reposition and offer our existing tenants an offer to expand their operations pan India.”
Source: The Hindu Business Line
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