Singapore firm may invest $100 m in RMZ

GIC, the investment arm of Singapore government, is likely to invest close to $100 million in RMZ Group, one of the real-estate developers based out of Bangalore. If the deal goes through, it will among the top private equity investments in the booming real-estate market in Bangalore.

According to investment banking sources, RMZ is floating a special purpose vehicle (SPV) and GIC will be investing in this SPV. GIC is expected to take up a minority position for this investment and RMZ may use these funds to fuel its expansion. RMZ declined to comment on the deal while GIC was unavailable for comment.

GIC is a global investment management company established in 1981 to manage Singapore's foreign exchagne reserves.

With a network of six overseas offices in key financial capitals around the world, GIC invests internationally in equities, fixed income paper, money market instruments, real estate and special investments.

Since its inception, GIC has grown from managing a few billion dollars to more than $100 billion today, making it among the world's largest fund management companies.

GIC has a real-estate focussed investment arm GIC Real Estate Pte Ltd and currently manages a multi-billion dollar portfolio of direct and indirect property investments worldwide, with over 120 separate investments across more than 25 countries.

RMZ Corp has developed more than 6 million square feet of quality space in the last two years alone and currently has properties in Bangalore, Pune, Chennai and Hyderabad and is venturing into Kolkatta. The company plans to build 11.9 million sq feet in 18 months and is scouting for land in Kolkatta.

In the first quarter of the year, the company has taken up 6.7 million sq ft of construction in Bangalore, 2.2 million sq ft in Chennai and plans to take 1 million sq ft each in Pune, Hyderabad and Kolkata. The company was successful in bidding for the 12 acre Kissan factory land on Old Madras Road in 2004.

On this land, the company plans to build 'RMZ Infinity?, a 1.2 million sq ft development comprising five towers with each tower having 2.5 lakh sq ft of built-to-suit facility for ITeS and BPO companies. RMZ also plans a 60,000 sq ft of branded food court to cater to the offices in the neighbourhood.