RMZ Corp-Essar Group’s Equinox Business Park deal may conclude before December-end

MUMBAI | BENGALURU: The proposed deal between RMZ Corp and Essar Group for the latter’s 1.2-million sq ft Equinox Business Park in Mumbai is likely to be concluded before December end.

In August, ET had reported that RMZ Corp is in advanced talks to acquire 50 per cent stake this commercial complex near Mumbai’s Bandra-Kurla Complex for Rs 550-600 crore. As part for the arrangement between both the parties, Essar may sell more stake in the complex to RMZ later subject to certain conditions.

"We will conclude the transaction before December end," RMZ's Chairman Raj Menda told ET.

An Essar Group spokesperson could not be reached for comments on the story.

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.

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 are hovering at Rs 165 to 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.

Prior to RMZ Corp, at least three private equity players had evinced interest in picking up stake in the property. However, it had not moved further due to mismatch in valuation expectations.

Besides this commercial property, Equinox also owns Essar’s townships in various locations across the country including Bengaluru. The group’s real estate holdings are pegged at over Rs 3,000 crore.