Prestige Estates, RMZ Corp JV to purchase commercial project
The 70-acre land was originally supposed to be a joint development between Mantri Developers and Century Real Estate
Prestige Estates and RMZ Corp have formed a joint venture (JV) to buy a commercial project in Bengaluru, Karnataka by Mantri Developers for about Rs 1,500 crore.
The National Green Tribunal (NGT) had ordered Mantri Developers to pay a fine of Rs 117 crore for encroaching on an adjacent lake and destroying ecologically sensitive wetlands.
The 70 acre land was originally supposed to be a joint development between Mantri Developers and Century Real Estate, the land owner. But the NGT decision had stalled all progress.
The NGT had also issued an order in 2016 expanding the buffer zones around the city’s lakes to 75 mtr, higher than the prescribed 30 mtr. This too impacted the Agara development plans.
As part of the new deal, Prestige Estates and RMZ Corp will develop about eight million sq-ft of commercial office space, unlike the previous plan which was supposed to be mixed use, with commercial, retail and residential projects.
RMZ Corp has plans to take its commercial portfolio to 75 million sq-ft in the next five years. It has 15 million sq-ft under development across major cities in the country and 16 million sq-ft of completed projects generating rental income of Rs 1,200 crore annually. Prestige Estates has 10 million sq-ft of operating office space and another 25 million sq-ft in the pipeline.