Bengaluru-based real estate developer RMZ Corporation will invest $7 billion in equity over the next five years to develop over 125 million square feet (mn sq ft) of space in different projects worth $25 billion across major cities including Mumbai, Bengaluru, Delhi, and Hyderabad, the company said.
The company said that the investment will be made in projects across uber-luxury housing, office spaces, hospitality, industrial and logistics, and mixed-use projects.
RMZ Corp, privately owned by Raj Menda and Manoj Menda, which has so far been involved in the development of Grade-A office complexes, has now decided to diversify into other segments of real estate, including luxury living, mixed-use, office spaces, industrial and logistics, and hospitality.
The company also announced the appointment of Arshdeep Sethi as President of RMZ Real Estate to spearhead its growth plan.
Speaking to Moneycontrol, Sethi said, “We will invest $7 billion in equity to develop roughly over 125 million square feet of space across hospitality, ultra-luxury residential, office space, industrial and logistics, and mixed-use projects worth $25 billion in the next five years."
He said the investment will be funded through internal accruals and by setting up an investment platform with global institutional investors.
Sethi said that half of the equity investment will be dedicated to the mixed-use and office segments and the remaining to the other three segments: residential, hospitality, industrial and logistics.
Further detailing the expansion plan, Sethi said that the company will develop over five ultra-luxury residential projects by 2028-29 with an investment of close to $0.6 billion. “We are planning to launch these ultra-luxury residential projects in Mumbai, Gurugram, and Delhi. We are in the process of acquiring a land parcel for the same in Gurugram,” he said.
Sethi added that the company will also launch 10 business and leisure hotels. Business hotels will be launched in cities like Mumbai, Delhi, Bengaluru, and Chennai, while leisure hotels will be developed in Goa and Rajasthan. These hospitality projects would be worth $3.1 billion.
Sethi said that RMZ plans to develop 62 mn sq ft of industrial and warehousing space worth $3.6 billion. He said that the company is planning to develop its logistics parks in Bengaluru and Chennai.
RMZ Corp has also appointed chief executive officers (CEOs) for its various asset classes. It appointed Thirumal Govindraj as CEO of RMZ Office, Avnish Singh as CEO of RMZ Mixed Use, Saandip Kundu as CEO of RMZ Living (ultra-luxury residential offering), and Avinash Sule as CEO of RMZ Industrial and Logistics and RMZ Hospitality.
“This strategic transformation underscores the family’s unwavering commitment to growth and expansion within alternate investment classes. We are deeply focused on investing in high-growth opportunities across geographies that lay the foundations for a sustainable global economy,” Raj and Manoj Menda, Chairs of the Supervisory Board of RMZ Corporation, said in a statement.
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