CPPIB, RMZ to invest $750 million in commercial project in Mumbai

The project may become one of Asia's largest office spaces

The Canada Pension Plan Investment Board (CPPIB) and RMZ, an alternative assets owner, will invest $750 million in a workplace development project named RMZ Nexus in Jogeshwari, Mumbai.

 

The project will span an area of 3.74 million square feet (msf), with the building spread across six towers on a 10.94-acre site, as per a statement by RMZ today. The project is estimated to be completed by 2027. RMZ stated that the project is set to become one of Asia’s largest office spaces.

 

“It will stay in the portfolio. It's a marquee asset, and we don't generally exit from our marquee assets. It stays in the portfolio, and we continue to grow the asset within the portfolio,” said Thirumal Govindraj, chief executive officer (CEO) of RMZ Office and RMZ NXT.

 

Speaking on the development, Govindraj said, “RMZ Nexus is a testament to our conviction in Mumbai’s dynamic future and India’s burgeoning economy. We are poised to further expand our portfolio across Mumbai and other strategic markets, shaping the future of real estate and contributing to India’s continued economic ascendance.”

 

Govindraj informed that the company is looking at another six to seven large projects across Mumbai. “If everything goes well, we should be able to announce something in the first quarter of 2025,” he added.

 

The project will stay in the company’s portfolio. “It’s a marquee asset, and we don’t generally exit from our marquee assets. It stays in the portfolio, and we continue to grow the asset within the portfolio,” he said.

 

Govindraj noted that 80 per cent of the company’s portfolio across Bengaluru, Hyderabad, and Chennai is occupied by brand new global capability centres (GCCs).

 

“What is interesting is it’s not only financial services that are growing; it is also sectors like healthcare and insurance that are becoming large players in some cities. There are a lot of new sectors opening up. India's initial growth came through information technology (IT) and IT-enabled services. But now, it is the GCCs, a mixture of tech as well as business process outsourcing (BPO) and knowledge process outsourcing (KPO) businesses,” Govindraj added.