RMZ Corp, backed by Qatar Investment Authority (QIA), has bought 8 lakh square feet of IT Park space in Gurgaon from property firm BPTP for about $150 million, according to sources familiar with the matter.
The deal, which is a mix of debt and equity, marks the Bengaluru-based company’s maiden foray into NCR. It is the latest in a series of large office space buyouts by marquee global investors who want to create a portfolio of rent-yielding commercial assets in India. And the deal action is shifting to NCR, which boasts of a large technology workforce, after Bengaluru and Pune.
RMZ bought the IT Park, named BPTP Crest, which is located in Phase IV of Gurgaon opposite to DLF Cyber City and also close to the international airport. The tenants include global tax and audit company Deloitte and US-based financial services firm Fidelity.
TOI first reported the deal in September last year. BPTP confirmed the deal.
When contacted, Manoj Menda, corporate vice chairman RMZ Corp, said, “Stepping up to building a powerful global brand and revolutionising the office space experience makes RMZ the preferred choice of sovereign investors like QIA. Our portfolio is a part of the Invesco and Devco opportunistic strategy, focused on growth of businesses enabling the company to accelerate its expansion plans both in NCR and the West, where we believe there is significant potential.”
The deal comes on the heels of RMZ’s plans to buy Essar’s business park, Equinox, in Mumbai for about $360 million.
BPTP, which has its corporate office in the same building, also counts Blackstone as one of its investors in the project. The world’s largest private equity fund owns about 11%, which translates to gains of $16.5 million after the deal. Other notable investors include JP Morgan and Citi Property Investors, which was bought by Apollo Global in 2010.
“Post giving exit to three of our investors, we are wholly focused on completing all our projects at the earliest by raising construction loans through loans. We also plan to sell some of our non-core assets to raise funds for meeting our business requirements,” a BPTP spokesperson told TOI.
RMZ manages about 20 million sqft of office space across multiple cities currently, but is on the prowl for large acquisitions to build 80 million sqft portfolio in the next five years.
“Core asset acquisition is a key focus for many serious office developers who are witnessing delays in approval processes in managing the entire cycle of real estate development,” Juggy Marwaha, managing director, South India JLL, told TOI.
“Even though this a cap-rate based transaction, it is almost the order of the day for future transactions wherein developers will acquire and consolidate a sizeable portfolio across various geographies much more rapidly and this is primarily being done in time for listing of their REIT’s,” he added.
RMZ’s acquisition is the latest in a series of high profile office space deals as large global investors like Blackstone, GIC of Singapore, Brookfield Asset Management, Canadian Pension Plan Investment Board and Middle East sovereign funds have chased down transaction opportunities. They together acquired assets worth $3 billion during the last calendar year. India’s large grade A office buildings, riding on a robust services economy, has returned stable yields to investors in an otherwise volatile real estate market.