India’s Largest Office Space Now In Hyderabad
My Home, Telangana’s large and rapidly developing real estate house has joined hands with office space specialists RMZ group to develop a 10 million sq. ft. commercial property in Hyderabad. This project aims at developing 6,500 crore office space in 10 acres of land in Hyderabad. This prestigious property will be developed in Hyderabad Information Technology (IT) and Engineering Consultancy City, abbreviated as HITEC City. Both RMZ and MY Home group will be contributing at equal ratio in this project.
Cushman & Wakefield's Hyderabad managing director Veera Babu commented that this will be largest office space project in the country till date. However both the participants did not respond to the queries seeking more information about this project.
Another reputed property consultant remarked that "My Home Group, was in talks with some of India's leading real estate players across the country with specialisation in office space development for this project and has finally struck the joint venture deal with RMZ group".
Bengaluru’s leading real estate developer Brigade group and Tishmen Speyer were said to among half a dozen companies that were considered for tie up by My Home for completing this project. "A 50:50 joint venture agreement was inked between My Home and RMZ for this project and project is named as The Sky View". In the first phase of the project 3.5 million sq.ft is to be constructed and handed over by December 2018", remarked an real estate developer.
My Home Group, the cement to construction conglomerate founded by industrialist Jupally Rameswar Rao, has developed over 10 million sq ft of built-up residential and commercial space with a turnover of Rs 3350 crore and is based out of Hyderabad.
In 2016, My home planned to increase its exposure in the realty market particularly in office space and had launched round 16 million sq.ft of different projects in and around Hyderabad at an estimation of Rs.5, 000 crore, with completion planned in three years. However due to lack of subject expertise things did not move in the right direction. To overcome this My Home has decided to tie up with developers specialized in office space.
This JV will help RMZ group to renter the Hyderabad real estate market. RMZ group had earlier developed its first office space property named ‘RMZ Futura’ in 2001-02. Bengaluru based RMZ group to keep afloat the prospects of improving the quality of office space in Hyderabad. The Bangalore based real estate company has been gathering information about land for developing office space and was constantly in touch with government regarding the availability of land area., said a property consultant.
The demand for office space in Hyderabad is high as the vacancy level is very less among the top metros in India. Next to Bengaluru, Hyderabad has witnessed second largest absorption of Office space. With IT, ITeS, and BPO office concentrated near Madhapur, Kondapur, Raidurg and Hitec City and Gachibowli the demand for leasing of office space in these areas is more and the plan to develop this office space in Hitech city is expected to meet the demand.
Veera Babu of Cushman & Wakefield said "The entry of top notch developers like RMZ to Hyderabad will improve the quality of construction and this will also open up the gates for entry of their clients who are operating in other states to Hyderabad. This will enhance the access of multiple corporate to Hyderabad. He also commented the JV between My Home and RMZ will provide world class office immediately in Hyderabad".
Bengaluru based RMZ is family owned Construction Company and has built nearly 20 million square feet since its inception in 2002, and is exploring the options of listing its company by the middle of this year. The company is in talks with Qatar Investment Authority (QIA) to raise funds for acquiring commercial spaces in leading metros.
RMZ has already acquired funds worth 300 million dollars from QIA in 2013 for developing various commercial spaces. The company is targeting to develop 80 million sq ft of office space by 2020. As a first step in that direction RMZ had acquired 100% stake in Essar Commercial group project Equinox Business Park in Mumbai's Bandra-Kurla Complex in January 2017 amounting to Rs. 2,400 crore.
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