DB Realty Ltd said on Monday it has struck an agreement with Bengaluru-headquartered real estate firm RMZ Corp. to transform Mumbai-based six-decade-old Kamalistan Studio, also known as Kamal Amrohi Studio, into an office park.
Under the deal, Mahal Pictures Pvt. Ltd (MPPL), an associate of Mumbai-listed developer DB Realty, will sell and develop a part of the land belonging to itself with RMZ Group into one of India's largest corporate office parks.
DB Realty, in a disclosure, did not mention any details about the financial terms of the deal. DB Realty had acquired Mahal Pictures, along with Kamalistan Studio, from late filmmaker Kamal Amrohi’s children more than a decade back. Amrohi has directed, among others, Pakeezah, starring Meena Kumari.
The deal gives RMZ access to a prime office project in the financial capital of India. RMZ, known for its commercial projects down South, has a portfolio of around 30 million square feet at various stages of development. It aims to take its portfolio to over 60 million square feet in the next five years.
Last year, the promoters of RMZ bought back stakes held by Qatar Investment Authority and Baring Private Equity Partners India in a unit, marking one of the biggest exits for private investors in India’s real estate sector in recent times.
The promoters Raj Menda and Manoj Menda bought back the 45% stake in RMZ Infotech through a combination of internal accruals and bank financing.
RMZ is also one of the strong contenders for real estate investment trust in the medium term.
The Kamalistan Studio development marks another instance of a landmark film studio getting converted into a real estate project.
Last month, Mumbai developer Godrej Properties bought the iconic RK Studios. It plans to develop a mixed-use real estate project on the land parcel.