RMZ Corp., the privately-owned Indian real estate investment, development and management firm employing over 15,000 workers across the globe, had divested 12.5 million square feet of its real estate assets to Canada’s Brookfield Asset Management Inc. at a $2 billion buyout deal, the Toronto-based Canadian asset management company had said in a statement late on Monday.
In point of fact, the divestment deal of Bangalore-headquartered RMZ Corp. owned by a billionaire Indian Menda family, which was first reported earlier in the day by the Hindu Newspaper and Bloomberg News, would involve a sell-off of the Indian multinational real estate developer’s co-working business unit CoWrks, a Brookfield spokeswoman had confirmed late on the day.
RMZ to divest 12.5 million Sq. ft of real estate assets to nullify a soaring debt-pile
Apart from that, the Bloomberg News report earlier in the day had been quoted the Canadian asset manager as saying that the deal would help RMZ downsize its soaring debt-piles to a near-zero level, while the Indian real estate developer had been working out a plan to diversify its portfolio by capitalizing on the cash that it would be raising following the divestment of its 12.5 million Sq.
ft of real estate assets. On top of that, followed by the reveal of media headlines that highlighted the latest RMZ move to lower its debts to a near-zero level amid a growing demand concerns, RMZ said in a statement later in the day, “The deal marks the largest-ever deal in the Indian real estate industry,” adding that the company would divest part of its assets from its core portfolio across two of the Indian mega-cities such as Bangalore and Chennai.
Apart from that, the Hindu Newspaper report published earlier in the day had also unveiled that the deal would involve a sale of as much as 18 per cent of RMZ’s commercial portfolio, while the commercial real estate portfolio of RMZ was valued at about $10 billion earlier in the year.