Essar sells business park in biggest office space deal

This is the latest in a series of large office space buyouts by RMZ Corp which has created a portfolio of rent-yielding commercial assets in India.

Essar group on Wednesday announced the sale of its Equinox Business Park, comprising 1.25 million sq ft office space, at prime Bandra-Kurla Complex (BKC) in Mumbai to realty firm RMZ Corp for about Rs 2,400 crore (Rs 24 billion).

This could be the biggest office space deal in the country as Godrej Properties in September had sold 4.35 lakh sq ft commercial space at Bandra-Kurla Complex for Rs 1,480 crore (Rs 14.80 billion).

"Essar and RMZ Corp announce the signing of definitive agreement in connection with acquisition of Equinox Business Park, a 1.25 million sq ft office space prominently located in Mumbai's prime CBD at Bandra-Kurla Complex for approx Rs 2,400 crore," Essar group said in a statement.

Commenting on the transaction, Essar's Anshuman Ruia said the business park is being sold as part of the strategy to monetise non-core assets.

"This transaction fits in with the Essar's strategy of successfully building businesses and actively managing the portfolio of assets to create and deliver value. This is in line with the present objective and focus of Essar to monetize non-core assets and deleverage the balance sheet," Ruia said.

Essar's executive director (M&A) Sudip Rungta said the Equinox Business Park, being developed by the Essar group firm Equinox Realty Holding Ltd, has 4 towers comprising 1.25 million sq ft of office space.

Out of four towers, three are completely leased out, while one tower having about five lakh sq ft of leasable area has just been completed and is yet to rented out, Rungta told PTI.

The business park houses tenants including Nissan Motors, Acropolis, Crompton Greaves, Gilbarco Aegis, Lafarge and alike besides the offices of Essar.

"We are confident that with this acquisition we will extend our core businesses into the growing markets with a world-class development opportunity in the heart of one of Mumbai’s major regeneration zones," Bengaluru-based RMZ Corp Corporate Vice Chairman Manoj Menda said.

This is the latest in a series of large office space buyouts by RMZ Corp which has created a portfolio of rent-yielding commercial assets in India, the statement said.

RMZ holds 20 million sq ft of core assets under management and is accelerating towards achieving a five-year growth plan of 80 million sq ft, anchored by Qatar Investment Authority.