CPP investment, RMZ Corp form second office joint venture

The joint venture will be tied up with StarTech, a 1.37 million sq ft office building in Bengaluru’s Koramangala area, currently co-owned by RMZ and real estate developer Prestige Group. CPP Investments will acquire Prestige’s entire stake in StarTech.

This is the second joint venture between RMZ and CPP Investments after their first joint venture to develop and manage approximately 10 million square feet of commercial office spaces in Hyderabad and Chennai in 2021. The Canadian fund had previously committed to invest $210 million in the joint venture.

“We continue to identify high demand for premium commercial office space in India in top city locations such as Bangalore. As the city develops as a destination for technology businesses and start-ups, we are the market leaders. RMZ, grow our portfolio to support demand. Our overall focus remains to enhance our ability to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries,” said Hari Krishna. V, Managing Director, Real Estate – India, CPP Investments said.

In 2020, RMZ sold 18% of its office property, or 12.8 million square feet, to a fund managed by Canada’s Brookfield Asset Management Inc. for $2 billion in one of the largest real estate deals in the country. As part of the transaction to reduce debt, it also sold its co-working business ‘CoWrks’ to Brookfield.

“… This joint venture (with CPP investment) will provide RMZ with additional opportunities to create new strategic financial co-investments and stay ahead of the curve, while also significantly increasing capital allocation across core and growth asset portfolios. Two The joint ventures together have been set up to develop assets worth over US$2.5 billion across cities,” said Manoj Menda, corporate chairman of RMZ Corp.

RMZ has previously partnered with long-term institutional investors. In 2013, the Qatar Investment Authority (QIA) invested $300 million in the real estate firm, and in 2019, RMZ partnered with global developer Mitsui Fudosan for $1 billion to jointly develop the property in the country. Of.