In a bid to expand its property portfolio through acquisitions, RMZ Corp. is planning to raise US$900 million to US$1 billion in equity, the company's managing director for management, Thirumal Govindraj, said in an interview with The Times of India.
The Indian developer is said to be in talks with Canadian Pension Plan Investment Board, or CPPIB, and Qatar Investment Authority for support of the capital raising program, with the former being invited as a new investor and the latter infusing more capital to its US$600 million investment.
Govindraj told the publication that the company aims to expand its office rental space to 60 million square feet from the current 21 million square feet over the coming five years. According to the report, CPPIB could invest in RMZ Infotech, owner of existing operational business parks, or in a new company that will own and build upcoming business parks.
RMZ has shelled out more than US$1 billion in acquiring business parks in Mumbai, Gurgaon and Hyderabad in the past 12 months, with recent and ongoing acquisition deals adding about 15 million square feet to its portfolio, Govindraj added.
Qatar Investment and CPPIB were not immediately available for comments on the deal, the Aug. 2 report noted. It added that the discussions are not related to the planned listing of RMZ Infotech on the Indian bourse as a real estate investment trust.