Bengaluru-based real estate firm RMZ Corp. has partnered Mitsui Fudosan Co. Ltd to set up an equal joint venture of $1 billion (Rs 7,150 crore at current exchange rate), marking the Japanese developer’s maiden Indian investment.
The JV will first develop a 3.5 million square feet office space called RMZ Ecoworld 30 in Bengaluru’s outer ring road area. The venture is also planning to expand to regions such as Mumbai and the National Capital Region (NCR).
News of the venture comes after The Times of India reported in November that Mitsui and the Canadian Pension Plan Investment Board (CPPIB) were in advanced talks to invest close to Rs 3,000 crore (around $418.6 million then) across RMZ’s upcoming office projects.
“Our association with Mitsui Fudosan is a testament to the synergies in our approaches that create an ecosystem with bespoke solutions that harness long-term, stable incomes and value creation of our assets,” RMZ managing director, executive board, Arshdeep Sethi, said.
Sethi added that the joint venture is in line with RMZ’s vision of 85 million square feet of assets under management by 2025.
Mitsui Asia managing director Tetsuya Matsufuji said that the partnership with RMZ would help the Japanese developer. “Mitsui, along with RMZ, is looking to redefine commercial assets that are bolstered with technology, well-curated ecologically and sustainability-conscious,” Matsufuji added.
RMZ, founded in 2002, controls assets of around 67 million square feet. The privately-owned entity says it has over 200 enterprise customers in regions such as Bengaluru, Mumbai, NCR, Chennai, Hyderabad and Pune.
Tokyo-headquartered Mitsui says it is seeking to achieve a global presence. It has an operational presence in several parts of Asia, including malls in Shanghai and Kuala Lumpur, residential businesses in Thailand and Singapore, and hotel businesses in Taiwan and Thailand.