RMZ Corp, a real estate developer, is exploring special purpose vehicle (SPV) route for expansion into other cities. The company is eyeing Chennai for further expansion and NCR, Mumbai and Hyderabad markets for foray into office space realty.
“As a strategy, we are working to expand our footprint and also increase leased office space to 23 million square feet,” Raj Menda, Chairman RMZ Corp told Business Line .
“For our expansion, we are currently putting in place SPVs, which are designed to take in capital from sovereign wealth funds. Also, working on exit route through an REIT in the next two years,” he added. The company is in advanced stage of taking over projects located in Chennai, NCR, Mumbai and Hyderabad markets.
“Once after acquisition is done, we will be able to reposition and offer our existing tenants an offer to expand their operations pan India,” he added.
In the last one year, the company has leased 3.25 million square feet under ‘Ecoworld’ campus out of a total 5.75 million square feet of office space development. “Most clients have preferred pre-lease space from us and at present we have developed about 38 per cent of the new office supply in Bangalore through this route,” said Menda.
Several Fortune 500 tenants who have taken space have been consolidating their operations within the RMZ campus.
Talking about innovations in sustainable operation in office space complexes, Menda said, “Every RMZ Commercial Office Assets has been designed to address the global demand. The fact that our portfolio has achieved a stabilised occupancy of over 98 per cent coupled with assets that command up to a 50 per cent premium to the market average in some micro-markets is a testament.”
“This focused approach has allowed us to operationalise assets that are 11 years old, but still command the second-highest rental per square feet in Bangalore,” he added.