CPPIB to invest Rs 2,650 crore in JV with RMZ Corp to develop commercial assets

March 1, 2022

CPPIB to invest Rs 2,650 crore in JV with RMZ Corp to develop commercial assetsNEW DELHI: RMZ Corp (RMZ) and Canada Pension Plan Investment Board (CPPIB) have entered into their second joint venture to develop and hold commercial office space in key cities across India, the company said in a media release.

The total aggregate capital commitment by CPPIB into the joint venture will be up to Rs 26.5 billion (C$ 449 million), to support the development and acquisition of projects across India.

The joint venture will be seeded with StarTech – a 1.37 million-sq-ft Grade A office building located in Koramangala, Bengaluru, which is currently co-owned by RMZ and Prestige Estates. CPPIB will acquire Prestige’s entire stake in StarTech.

Manoj Menda, corporate chairman, RMZ Corp said, “This joint venture will provide RMZ additional opportunities to forge new strategic financial co-investments and remain ahead of the curve whilst also significantly increasing capital allocation to the core and development asset portfolios. The two joint ventures together have been established to develop assets worth in excess of US $2.5 billion across cities.”

This is the second joint venture between RMZ and CPPIB, following their first joint venture formed in 2021 to develop and manage approximately 10 million sq ft of Grade A commercial office spaces across Hyderabad and Chennai.

Spread across eight acres, StarTech is a LEED Platinum-rated green building and has 100% occupancy.

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