The city-based offices space developer RMZ Corp has plans afoot to develop around 10 mln sqft of Grade A office space in Hyderabad over the next 3-4 years, considering a steady demand for the same. The developer is ready to invest $1 billion for this project, as was ackowledged by the RMZ managing director (executive management) Thirumal Govindraj on Friday.
This development will be made as per the company’s plans to build an additional 40 mln sqft of commercial space across the country by 2020, by developing its own projects or by buying ready assets, to take the total assets under its management to 60 mln sqft. RMZ Corp currently has a portfolio of around 20 mln sqft of commercial space across cities like Bengaluru, Mumbai, NCR, Chennai, Pune and Hyderabad.
Currently, RMZ is already working on India’s largest office space project – Skyview – in Hyderabad’s IT hub through a 50:50 JV with Hyderabad-based MyHome Group, but at the same time it wants to acquire more land in the city’s IT hub. “We are very bullish on the Hyderabad market which has low vacancies and robust demand for Grade A office space. We plan to invest $1billion in Hyderabad over the next 3-4 years with a target size of 10-11 mln sqft of assets. This includes 3.73 mln sqft of Skyview and another 6.3 mln sqft of space,” Govindraj said.
Pointing out that they expect 50-60% space committment for Skyview by the first quarter of 2018, he said they are also looking at land parcels in the IT hub of Hyderabad and are also open to acquiring ready assets as well. “This is part of our two-pronged strategy to build assets as well as acquire ready assets. We are looking at 70-80% our own developments and about 20-30% acquisitions,” he explained. According to Govindraj, the company is in talks with Canadian Pension Plan Investment Board (CPPIB) and existing investors like Qatar Investment Authority RMZ to raise around $1billion to fund its asset portfolio expansion.
RMZ Corp is also exploring for opportunities in the co-working spaces arena for its venture CoWrks with two projects planned in the city. While it plans to open a 1,00,000 sqft co-working space in the upcoming Skyview, it is also looking for options in the Banjara Hills area for a co-working facility. “We have a target of 1 mln sqft for co-working spaces across India over the next three years. We already have 2,20,000 sqft in Bengaluru and another 3,00,000 sqft is slated to come up over the next 6-8 months in cities such as Hyderabad, Bengaluru, Pune, Mumbai, Chennai and Delhi where we are in the process of signing up space,” Govindraj explained.