Update: RMZ Corp Receives Investment From QIA Fund
by Charmi Gutka
Qatar Investment Authority, a sovereign wealth fund is investing $300 million in RMZ Corp, a Bangalore based commercial space developer, states ET.
The capital will be invested into RMZ's SPV in which Baring Private Equity Partners, also had invested R500 Cr in 2012. The investment will be equally split into a combination of equity and debt.
QIA Fund will back RMZ to buy IT parks worth R3,000 Cr and jointly, both partners will look at acquiring commercial spaces across Bangalore, Hyderabad, Chennai and Pune.
Baring PE invested $100 Mn in the company which was used to back RMZ Corp's acquisition of an office space project of 6 Mn Sqft in the technology hub of Bangalore.
Baring held 26% stake in the SPV floated for this buyout, while the remaining stake was held by RMZ.
This year in January, AIG Global Real Estate bought out RMZ Corp's 50% stake in their stalled JV mall project in Hyderabad.
The family-owned RMZ Corp with a portfolio of over $3 Bn is also looking to list its office properties by 2015 through REIT in markets such as Singapore and Thailand.
In the past 7 years, RMZ has acquired and developed over 13 Mn sq ft and today manages a property portfolio in excess of US$ 3 bn in real estate value across India. The company has committed 64 Mn sq. ft of development for next 5 years. It has presence in Mysore, Mangalore, Coimbatore, Kochi and Nagpur.
This March, Qatar Foundation Endowment acquired 5% stake in Bharti Airtel for $1.26 Bn. Earlier this year, Qatar Investment Authority, the Gulf state's sovereign wealth fund announced that it is looking to invest up to $10 bn in India every year.
SAIF Partners, one of the early backers of BSE listed local search directory, Just Dial has sold close to 2.4% stake in the company for a total of INR254 Cr. The part exit fetches the fund, a 30x returns on its seven year old investment.