In order to boost its commercial sales, RMZ corp has commenced the selection of investment banks to manage its initial public offering (IPO) for its proposed real estate investment trust (REIT). The real estate seeks to raise more than Rs 2,000 crore from it.
With this REITs, the company would like to invest mainly in leased office and retail sectors allowing many developers to collect funds by selling rent-yielding buildings to investors. Till now, the developer has finished meeting with around 8-9 investment banks including Indian and foreign banks. The company is considering few more discussions before finalising on the bankers for their offerings.
RMZ corp is hopeful about raising $500 million (more than Rs 3,000 crore) through its REIT proposal. The developer is willing to sell the stake of around 20 million sq. ft. of commercial rental property. With this, it has given a clear hint of the company focusing on expanding commercial portfolio across major cities of India.
“From a strategy standpoint, residential business is going to be on the backburner. We are not going to take up any fresh projects. It is only going to be commercial real estate going ahead,” Thirumal Govindraj, MD (Management), RMZ Corp.