RMZ Corp to focus on alternate asset classes, outlays large capex plans

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Bengaluru-based real estate major RMZ Corporation says that it has transitioned into an alternate asset owner with five verticals spanning office, mixed-use, industrial, logistics, ultra-luxury residential (living), and hospitality sectors with a capex allocation of several billion dollars over the upcoming five years. 

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RMZ’s evolution from a commercial real estate-centric enterprise to a diversified alternate asset owner comes with the objective of creating assets worth $25 billion over the next five years.  

This includes plans for 50 million sq ft of office space worth $10.4 billion in six markets, 15 million sq ft of mixed-use worth $8 billion in Delhi NCR, Mumbai, and Bengaluru, and 62 million sq ft of industrial and logistics worth $3.6 billion. The hospitality sector will witness the development of over 10 hotels – which will be a mix of business and leisure hotels, worth $3.1 billion. Additionally, it is branching into luxury residential projects with projected annualized sales of $0.6 billion. 

Strategic transformation

Moreover, this strategic transformation aligns with its aim to ensure a substantial rent-yielding real estate business by 2029.  

Governance is overseen by a Supervisory Board, chaired by the Menda brothers, Raj and Manoj, and involving the family’s second generation, Sidharth and Mihir. Meanwhile, the Executive Board, comprising non-family senior leaders, manages the firm’s diverse businesses. 

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According to Raj and Manoj Menda, Chairs of the Supervisory Board, RMZ Corporation, “We are deeply focused on investing in high-growth opportunities across geographies that lay the foundations for a sustainable global economy. With the assistance of our second generation, Sidharth and Mihir, we are positioned to become among the world’s largest family-owned alternate asset owners in the next 5 years.” 

Further, the company has appointed Arshdeep Sethi as President of RMZ Real Estate, with CEOs for each asset class: Thirumal Govindraj, CEO, RMZ Office; Avnish Singh, CEO, RMZ Mixed Use; Saandip Kundu, CEO, RMZ Living; Avinash Sule, CEO, RMZ Industrial & Logistics; and RMZ Hospitality.  

“With a two-decade legacy in the real estate industry, we are well-positioned to expand into four additional real estate asset classes. Our primary objective is to create exceptional assets and high-quality portfolios on a global scale,” said Arshdeep Sethi, the newly appointed President of RMZ Real Estate.  

Funding

Regarding funding, the expansion plan involves a mix of equity and debt, with $7 billion in equity across all five verticals. Conversations with investors are ongoing to secure growth capital, with existing tie-ups with player including Canada Pension Plan Investment Board, he added.  

“We have great confidence in the India growth story and are committed to annually adding rent-yielding real estate around $ 5 billion to our portfolio, alongside annualized sales of $ 0.6 billion in luxury residential in 2029,” said Sethi.   

While international expansion is temporarily paused, the company plans to refocus on it in late 2024. One-fifth of its capital allocation is earmarked for acquiring and developing premium real estate in key global markets like London and New York. 

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