RMZ ready for realty FDI

In an effort to tap foreign direct investments (FDI) in real estate sector, Bangalore-based RMZ Corp has prepared an operating plan to take up 40 million square feet of construction. This will address all asset classes, such as offices, residential, retail and hospitality.

The assets are to be created over a five year period by initially concentrating in the cities of Bangalore, Chennai and Hyderabad and later moving into other cities like Pune and Kolkata.

The company is in the process of appointing a merchant banker to represent RMZ Corp in building financial business models and for valuations.

The company is expecting its first FDI transaction in first quarter of 2006 and will follow the asset (individual project) and entity (company) route to source funds, said Arshdeep Sethi, vice president - investment and alliances at RMZ Corp.

FDI investors are bullish over south India and so far many of them have gone around the region, met many developers and have also taken a close look at their asset creation plans to take a final decision in early 2006, he added.

According to Juggy Marwaha, head marketing, RMZ corp, of the 40 million square feet, 55 per cent is office space (which is the company's core business) and the balance will be residential, retail and hospitality developments.

For the first time, the company is entering residential housing sector by taking up two projects in Bangalore.

RMZ Corp, since its inception in 2002, has constructed 8 million square feet, mainly office spaces, in the cities of Bangalore, Chennai and Pune. Since then the company has helped Bangalore-based companies looking for expansion into other cities of their choice.

For the calendar 2005, the company has leased about 2 million square feet as compared to 1.5 million leased in 2004. Also in the last five years, the company has constructed 4.67 million sqaure feet in 2005, 1.5 million square feet in 2004, 1.02 million square feet in 2003, 1.5 lakh square feet in 2002 and 80,000 square feet in 2001.

"Now, we are entering the Kolkata market in January 2006. For this the company has been allotted 13 acres of land in Rajarhat by the West Bengal government," disclosed Juggy Marwaha. "In Kolkata, we are planning one million square feet development for which a few good enquiries have come from companies operating in Pune and Bangalore," he added.