CCI approves acquisition of RMZ’s commercial assets portfolio by Brookfield – ET RealEstate

NEW DELHI: Fair trade regulator CCI on Tuesday approved the acquisition of realty firm RMZ‘s commercial assets portfolio and co-working business by global investment firm Brookfield.

According to the information filed with the regulator, the deal involves the acquisition of certain real estate projects housed in RMZ Infotech, RMZ Galleria (India), RMZ North Star Projects, RMZ Ecoworld Infrastructure and RMZ Azure Projects.

It also entails the acquisition of 100 per cent shareholding by Brookfield Pvt Capital Ltd in CoWrks India Pvt Ltd.

The proposed combination is intended to be undertaken to enable the Brookfield Group to create value for the target projects and CoWrks by increasing cash flows and asset values, as well as by realizing its investment at the right time, the notice said.

It will also allow the RMZ group “to minimise the risk of geographic concentration and lend greater focus on other greenfield and brownfield projects and enable it to transition towards its objective of being a near-zero debt company,” it added.

The regulator in a tweet said it “approves Brookfield’s acquisition of certain real estate projects of RMZ Group & CoWrks”.

In another tweet, the Competition Commission of India (CCI) said it “approves demerger of the textiles business of GHCL Ltd. into its wholly-owned subsidiary GHCL Textiles Limited”.

The approval came after the board of directors of the GHCL Ltd, a public limited company, in March approved a scheme of the arrangement, involving an internal restructuring of its business by way of a demerger of its textiles business division into its wholly-owned subsidiary company named GHCL Textiles Ltd.

The proposed demerger is subject to receipt of the requisite approvals from the shareholders, creditors, and regulatory authorities — National Company Law Tribunal (Ahmedabad bench), Regional Directors, Registrar of Companies, Income Tax Department, Stock Exchanges and Sebi, a summary of the proposed combination filed with CCI said.

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RMZ to sell commercial assets to Brookfield for around Rs 14,000 crore – ET RealEstate

NEW DELHI: Bengaluru-based realty firm RMZ has agreed to sell its completed commercial assets portfolio and co-working business to global investment firm Brookfield for an enterprise value of around Rs 14,000 crore as part of its strategy to become debt free, sources said. The two companies have already approached fair trade regulator CCI for approval of the proposed deal, they added.

RMZ has a total debt of around Rs 12,500 crore and it will become a debt free once the deal gets closed after regulatory approvals.

According to the sources, the company is selling between 15 million sq ft and 20 million sq ft area of completed commercial space, mainly offices with small portion of retail.

The proposed deal also includes complete divestment of the group’s co-working business CoWrks. The enterprise value for the entire deal is pegged between Rs 13,000-14,000 crore, the sources said.

After this deal, the company would still have around 5-6 million sq ft area of completed office space and another 35 million sq ft under construction, they added.

“We shall not be extending any comments,” a Brookfield spokesperson said while replying to an e-mail query.

Reply to query sent to RMZ was awaited.

The 17-year-old RMZ group has over 200 enterprise customers in six Indian cities and over 60 million sq ft of completed and under construction assets.

India’s office segment has been performing very well despite overall slowdown in the real estate market. The net leasing stood at record 47 million sq ft in 2019 and it may drop this year due to the coronavirus pandemic.

The office market is also attracting a lot of global institutional investment from players such as Blackstone, Brookefield and GIC.

Few years back, Singapore sovereign fund GIC had invested around Rs 9,000 crore for pick 33 per cent stake in commercial portfolio of realty major DLF.

Blackstone has made significant investments in commercial projects of Embassy group, K Raheja group and Salarpuria Sattva.

Prestige group is in advance discussions with global investment firm Blackstone to sell its various commercial assets for an estimated Rs 12,000-13,500 crore as part of its strategy to clear debt and achieve future growth, sources had said last month.

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