(Reuters) - Privately held Indian developer RMZ Corp has sold 12.5 million square feet of its real estate assets to Brookfield Asset Management Inc BAMa.TO for $2 billion, the Canadian asset manager said on Monday.
The deal, which was reported earlier by Bloomberg and The Hindu newspaper, includes divestment of RMZ’s co-working business CoWrks, a Brookfield spokeswoman confirmed in an email.
RMZ will have zero debt after the deal that involves its rent-yielding offices and co-working spaces. It will use the money to expand its portfolio.
“The deal marks the largest-ever deal in the Indian real estate industry,” RMZ said in a statement.
The company will divest a part of its core portfolio across Bangalore and Chennai, it said.
The commercial real estate asset portfolio of RMZ is valued at about $10 billion, according to The Hindu newspaper of India.
The deal involved a sale of 18% of RMZ’s commercial assets portfolio.
The development comes as large foreign investors are buying into the Indian office market in recent years. Bengaluru-based developer Prestige Group signed an agreement last week with Blackstone Group Inc BX.N to sell rental income assets for about $1.6 billion.
Reporting by Kanishka Singh; Editing by Maju Samuel
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