RMZ Corp and Canada Pension Fund Signs Joint Venture Deal for Commercial Realty

RMZ and CPPIB Join Forces Again for Pan-India Commercial Real Estate Venture. Real estate major RMZ Corp and Canada Pension Plan Investment Board (CPPIB) have announced a second strategic collaboration to develop and hold commercial office spaces across India.

Key Points:

• Joint Venture Details: This venture marks the second partnership between RMZ and CPPIB, following their successful 2021 collaboration focused on Hyderabad and Chennai.
• Investment Commitment: CPPIB will contribute up to Rs 26.5 billion (C$449 million) to the joint venture, supporting project development and acquisitions across India.
• Seeding the Partnership: The venture will be kickstarted with StarTech, a 1.37 million sq ft Grade A office building in Bengaluru’s Koramangala, currently co-owned by RMZ and Prestige Estates. CPPIB will acquire Prestige’s entire stake in StarTech.
• Growth Strategy:
  • RMZ views this venture as an opportunity to secure additional co-investment partnerships and strengthen its core and development portfolios.
  • Together, RMZ and CPPIB’s joint ventures aim to develop commercial assets exceeding US$2.5 billion across various Indian cities.
• Sustainability Focus: StarTech, the seed asset for the venture, exemplifies RMZ’s commitment to sustainability. This LEED Platinum-rated green building boasts a 100% occupancy rate.

This renewed partnership positions RMZ and CPPIB as key players in India’s commercial office space market. Their combined expertise and substantial capital commitment will likely lead to the development of high-quality office spaces in major Indian cities.