Essar in talks with RMZ to sell 50 per cent stake in Equinox Business Park

MUMBAI/ BENGALURU/ NEW DELHI: Essar Group is in advanced talks with Bengalurubased realty developer RMZ to sell 50 per cent stake in its 1.2-million-sq-ft Equinox Business Park near Mumbai's BandraKurla Complex for around . 550 crore, said two people fa` miliar with the development.

RMZ will be buying into the asset through its alliance with sovereign fund Qatar Investment Authorities. The sovereign wealth fund is backing RMZ with an investment of Rs 1,000 crore in a platform specifically created to buy commercial assets across the country.

"Essar is looking to monetise its real estate assets and the said transaction is in line with the group's strategy to do so," said one of the people quoted above. "The talks were initiated almost four months ago and the deal may close anytime soon."

An Essar Group spokesperson and RMZ's Chairman Raj Menda declined comment for the story.

Equinox Business Park, developed by Essar-owned Equinox Properties near BKC on LBS Marg, is a commercial hub for banks, financial institutions and corporates. Out of four towers, three are already occupied with tenants including Essar Group companies, Tata Communications, CG (erstwhile Crompton Greaves), Viom Networks, Nissan, AMW and Lafarge.Lease rentals at the property Rs. 165 to ` are hovering at Rs. 175 per sq ft a month.

Essar Group has developed the corporate park on the Swan Mill Compound that it had acquired from Ashok Piramal Group's Peninsula Land in 2008.

According to the people quoted above, Essar has been looking to sell the property for some time and at least three private equity players had initially evinced interest in picking up stake in the property.However, it had not moved further due to mismatch in valuation expectations.