RMZ Completes Sale Of Commercial Realty Assets For $ 2 Billion; To Use 50% For Debt Repayment

The proceeds will be used to fuel RMZ's hyper-growth strategy, including the development of best-in-class assets across major markets

Realty firm RMZ Corp on Monday said it has completed the sale of its large commercial portfolio to Brookfield for USD 2 billion and will utilise half of the proceeds to retire debt and the balance for future growth.

In a statement, Bengaluru-based RMZ group said it has completed sale of 12.8 million sq ft of 67 million sq ft (about 18 per cent) of their real estate assets to a fund managed by Brookfield Asset Management, for USD 2 billion.

RMZ group had announced the deal, the country's largest real estate transaction, in October.

The proceeds will be used to fuel RMZ's hyper-growth strategy, including the development of best-in-class assets across major markets, the company said, adding that 50 per cent of the fund will be used for repayment of debt and the balance for the growth.

'The deal between RMZ Corp and Brookfield marks our most important milestones for the year— conversion to a “debt-free” firm. At RMZ, we look forward to enhancing our hyper-growth strategy,' said Manoj Menda, Corporate Chairman, RMZ Corp.

The transacted portfolio has assets in Bangalore, Chennai, Pune and the groups co-working operator CoWrks.

RMZ group plans to develop another 20 million sq ft portfolio over the next six years.

Source: http://www.businessworld.in/article/RMZ-Completes-Sale-Of-Commercial-Realty-Assets-For-2-Billion-To-Use-50-For-Debt-Repayment/07-12-2020-350899/