After Embassy group, RMZ in talks to buy office property in Mumbai

After the Embassy group, another Bengaluru-based property developer, RMZ Corp, is looking at getting a foothold in the Mumbai realty market.
 
Promoted by the Menda family, RMZ is in talks with Mumbai-based Omkar Realtors & Developers to buy the latter's commerical buildings at the localities of Bandra and Mahalaxmi, said sources.  
 
According to one source, RMZ is looking to buy 600,000 sq ft to 700,000 sq ft, with the value possibly between Rs 1,800 and Rs 2,000 crore.

Raj Menda, chairman of RMZ, confirmed the talks were on. An e-mail to Omkar did not elicit a response. Last week, the Embassy group bought a 14 per cent stake in Indiabulls Real Estate and is looking to buy a total of 28 per cent. It is hoping to become a pan-India player.

So is RMZ, which is backed by the Qatar Investment Authority (QIA). It earlier bought Equinox Business Park in Mumbai from the Essar group but later moved out of the deal. Early this year, RMZ acquired the right to build 1.7 million sq ft of commercial space from a Hyderabad-based cement manufacturer, in Hyderabad. It has also acquired two acres from the Hetero group, a pharmaceutical company, to develop a three mn sq ft office project in the city, according to reports.
 
RMZ also bought an information technology park in Gurgaon from property developer BPTP for $150 million. And, Bengaluru’s second Shangri La hotel for $100 million. It reportedly had plans for a real estate investment trust but this was changed after buying back stake from QIA and Baring Private Equity.

 
RMZ has 15 mn sq ft of projects under development across major cities and 16 mn sq ft of completed projects.
 
Omkar is one of the biggest in slum rehabilitation projects in Mumbai. It was close to selling its mall in the Andheri area to the Xander group, went reports last year. Gross leasing activity in India was almost 11 mn sq ft during the first quarter of 2019. 
 
This was driven by continued expansion of information technology companies and in flexible workspaces, according to Colliers International. 
 
Bengaluru accounted for the highest share in leasing at 31 per cent, followed by Mumbai at 19 and Chennai at 14 per cent. The southern cities continued to outperform, with leasing in Hyderabad doubling and a 60 per cent jump in Chennai.