Bangalore-based real estate developer RMZ Corp has bought around 25 acres of land in the outer ring road area of the city from another city-based developer, Adarsh Developers, in a bid to increase its footprint in the city.
As per highly-placed sources close to the development, the land deal was clinched with an approximate value of Rs 4-5 crore per acre.
“RMZ was looking for land in the recent past in the Bangalore market. They had also floated advertisements for the same. The present land parcel, which is in the outer ring road area of the city, is likely to be developed as a Special Economic Zone (SEZs) in the near future,” an industry source said.
He also said that Adarsh Developers had around 300 acres of land in the outer ring road area, of which the company had monetised this land parcel. While calls to Adarsh Developers remained unanswered, company officials from RMZ Corp refused to comment on this matter.
Of late, SEZs are among the preferred locations for the IT companies than STPI in which the tax concession period will be run out soon.
“RMZ Corp, which has a special focus on SEZs as part of their overall real estate portfolio, is trying to cash in on this rush for space in the SEZs,” an analyst in a real estate consultancy firm said.
The company, which has less land parcel in comparison to its peers in the Bangalore market, is also looking at scaling up its land bank in the near future, he added.Earlier, the developer had bought back its 50 per cent stake from AIG Global Real Estate Fund for its mall project in the city.
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RMZ Corp, which has its presence in cities like Chennai, Hyderabad, Kolkata and Pune, has acquired and developed over 13 million sq ft as of now and manages a property portfolio over $3 billion across India.
The company plans to develop around 64 million sq ft in verticals like office spaces, retail and homes in next five years.