Realty group RMZ to create assets worth $25 billion over next 5 years
Menda brothers-owned company plans to double its rent-yielding real estate business to $42 billion by 2029.
Bengaluru-based RMZ Corporation on Thursday, November 23, said it will invest $7 billion as equity over the next five years to develop office, residential, warehousing, hospitality, and mixed-use projects worth USD 25 billion across major cities as it sees huge growth opportunities in Indian real estate.
Menda brothers-owned company plans to double its rent-yielding real estate business to $42 billion by 2029.
"The USD 7 billion equity investments will be primarily for acquiring land for creating these assets as well as providing for 30-35 per cent equity in each real estate project to develop real estate projects," Sethi said.
"At RMZ Corporation, we find ourselves on the brink of a transformative journey, prepared to reshape our core operations and impact India’s alternative asset landscape. India’s potential to generate $1 trillion in diversified assets over the next 8-10 years is on the horizon, and our objective is to be visionary leaders who fully seize this exceptional opportunity," The next generation of the family, Sidharth and Mihir Menda commented.
RMZ Corporation has appointed Chief Executive Officers (CEOs) for its various asset classes -- Thirumal Govindraj, CEO of RMZ Office; Avnish Singh, CEO of RMZ Mixed Use; Saandip Kundu, CEO of RMZ Living (ultra-luxury residential offering); AvinashSule, CEO of RMZ Industrial & Logistics; and RMZ Hospitality.
The company plans to expand its rent-yielding real estate business to USD 40 billion by 2029 from the current USD 15 billion.
RMZ Corporation will focus on six major cities -- Bengaluru, Hyderabad, Chennai, Mumbai, Gurugram and Pune.
For residential business, the focus would be initially on two cities -- Mumbai and Gurugram -- where demand and prices of luxury housing are high.
Over the next five years, RMZ Corporation targets to develop another 50 million square feet of office assets worth USD 10.4 billion. It already has 10 million square feet of completed and 20 million square feet of ongoing office buildings.
In the mixed-use segment, the plan is to develop 15 million square feet of area worth USD 8 billion.
RMZ plans to develop 62 million square feet of industrial & warehousing space worth USD 3.6 billion. The company is looking at building more than 10 hotels across various cities, including Pune and Goa. These hospitality projects would be worth USD 3.1 billion.
In the residential segment, the company is targeting USD 0.6 billion in annualised sales by 2029.
With PTI inputs
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