Brookfield to Acquire RMZ 13.5 MN Sqft Commercial Property

Brookfield Asset Management is in advanced talks with Bengaluru-based RMZ Corp to acquire 13.5 million square feet of its ready and income-producing commercial property for Rs 12,000 crore ($1.6 billion). Brookfield plans to buy these assets in cities including Bengaluru, Chennai and Gurgaon, in what would be one of the largest commercial realty deals in India. RMZ's assets in Mumbai, Pune and Hyderabad are not part of the transaction. Both entities are re-looking at the assets to be transferred under this deal as the developer is keen to retain some of its flagship projects including RMZ Ecospace. The deal is expected to conclude by October end. RMZ may use the proceeds of the transaction to reduce some of its debt of Rs 13,500 crore and invest in expansion. The company plans to become a zero-debt entity in the near term. Brookfield will decide about adding part of this portfolio to its proposed REIT later. The assets to be bundled with its proposed REIT, size, percentage of dilution and other factors are being worked out. Brookfield already owns and operates infrastructure and real estate assets in India, including 22 million sq. ft. of office property.