Canada Pension Plan Investment Board (CPP Investments) is investing 15 billion rupees (US$210 million) in a joint venture with Indian real estate developer RMZ Corp to develop 10.4 million square feet of Grade-A commercial office sites in Chennai and Hyderabad. RMZ Corp chairman Manoj Menda estimates that the value of assets under the joint venture, once developed, will be worth over US$1.5 billion.
Of the 10.4 million square feet included in the transaction, 7.5 million square feet is already under active development with construction of the remaining space due to commence in the coming months. The three sites are RMZ Nexity (Hyderabad), RMZ Spire (Hyderabad) and RMZ One Paramount (Chennai).
“As India continues to be a strong source of global talent, demand for collaborative and engaging work space is expected to grow,” says Hari Krishna, managing director for real estate, India, at CPP Investments. “Working alongside RMZ Corp, a pioneer in the commercial property industry, this joint venture is well placed to meet the growing demand for high‐quality sustainable office assets in Chennai and Hyderabad.”
RMZ Corp managing director Arshdeep Sethi adds: “RMZ is among the only zero‐debt real estate companies globally. With equity deals for assets over the last few months, we have ample headroom to achieve our next phase of growth."