RMZ Corporation, a Bengaluru-based company, is headed west. “Indian-founded but global alternative asset owner” is the company’s stated global. In the next 12 to 15 months, it hopes to close free real estate deals in the US, EU, and UK, according to Mihir Menda, RMZ Corporation’s Supervisory Board Member.
He disclosed to HT Digital that the business intends to grow internationally. “It is undoubtedly rooted in risk management. The tale of India is amazing. However, we aspire to be an Indian-founded, worldwide owner of alternative assets,” he declared.
The business has been “actively examining the UK and the EU.” And moving out of India is a fantastic transition. In the years to come, the US will also be on our minds, especially because the country’s commercial real estate is now experiencing a mini-depression. With the capital-rich structure, now is the perfect moment for someone to enter the picture. There are many options available to you for rapidly recycling your capital. Additionally, he told HT Digital, “There are good opportunities where you can invest for the long term.”
Mihir Menda is a supervisory board member and a second-generation leader currently based in the US. He is involved in establishing strategic alliances and researching potential new international markets.
By 2032, RMZ hopes to own $100 billion in value of assets in its portfolio.
Menda made the following statement regarding the company’s goal: “It is ambitious but achievable.”
With a shorter investment horizon, he stated that the ‘next generation’ at RMZ “wants to invest in opportunities.” Brownfield sites “where a developer may have defaulted” may fall under this category.
“We could dive in and finish it by contributing our expertise. That eliminates the need for the first two to three years of foundation work, excavation, obtaining permits, and other associated hazards. Furthermore, earning your first dollar takes three years instead of seven.
The business might also be “happy to consider the acquisition and investment of certain core portfolio opportunities in addition.” And that might be Grade B plus Grade A less any assets we believe have room for additional value.”
For a $2 billion price, RMZ Corporation sold Brookfield a sizable portion of its commercial portfolio in December 2020, including co-working space and 18% of its commercial assets. Thus far, the business has sold 12.8 million square feet.
The Menda brothers’ privately held company, RMZ, has chosen to expand into other real estate markets after specializing in building Class-A office buildings. In November 2023, RMZ Corporation announced a significant investment of $7 billion over the following five years to develop $25 billion worth of office, residential, warehousing, hospitality, and mixed-use projects across major cities as part of its business expansion strategy.
RMZ intends to concentrate on asset classes with higher dollar returns.
The company is concentrating on asset classes and regions that “give better dollar returns,” according to Mihir Menda.
“It is that simple. If the residential prices are comparable today, it could be Manhattan or Mumbai, or it could be, you know, one or the other wherever the deal looks sweeter,” he continued.
RMZ is also examining properties in distress.
The business is willing to consider distressed assets as well.
“In general, we are considering investments, assets, and project developments— both green and brownfield—that have the potential to add value.
You might be able to invest 20 cents to a dollar because the asset itself generates rent, even though the current owner might have, for example, fallen behind on the loan. It could be an opportunistic investment or, occasionally, a core investment. Simply put, you are investing at the right time to ensure it will be profitable,” he clarified.
When asked if the business would invest internationally through a subsidiary, he responded that the real estate company is not considering doing business with other entities.
“…..our goal is to have RMZ, the owner of global alternative assets with funding from India. As a result, RMZ will be handling it rather than a set amount of capital,” he said.
Mumbai and Manhattan are also being compared in the business’s consideration of an “international foray.” We simply compare the areas where we receive higher returns before investing. He stated, “We are not comparing sources or setting aside any quantum for this.
Timelines
According to him, the business is “aggressively pursuing” opportunities for global expansion and should be closing a few deals “within the next 12 to 15 months.”
Indian versus international real estate markets
Contrary to other regions, Menda claimed that commercial real estate in India is relatively shielded from the real estate problems faced by other nations.
He sated that due ti mismanagement of cash flows, rising finance costs, and asset refinancing difficulties, Class A commercial assets in Manhattan, for instance, are trading at 25 to 30 cents on the dollar.
However, none of this takes place in India. And the beauty of India is that, despite being on the verge of overtaking the United States as the world’s third-largest economy, it remains relatively immune to the real estate crises plaguing most of the other economies we discuss, particularly those in Europe and the United Kingdom.