RMZ, Gopalan to develop 35-acre land parcel

RMZ, Gopalan to develop 35-acre land parcel

Real estate developers RMZ Corp and Gopalan Enterprises will jointly develop a 35-acre land parcel in East Bangalore on the Outer Ring Road.

A good part of the land could be developed as a special economic zone and the rest as general office space. The project is coming up opposite Bagmane Tech Park and will cover the area between Marathahalli and K R Puram, which are part of the IT hub, East Bangalore.

Funding has come in from Qatar Investment Authority and Barings Private Equity Partners. The land parcel is big considering that vast spaces have been developed for IT over the last 10 years around these very areas.

The built-up space would be high and would be a good buy for IT companies which are looking to lease out or buy out large office spaces. It also means there would be more seats available - jobs for emerging engineers.

Many companies these days are looking for space in excess of a million sqft, the way Accenture and Goldman Sachs went about.

Real estate analysts say the demand for office space in Bangalore is steady and looking to go upwards with the increase in outsourcing projects among companies based out of the city. The most recent purchase of HP’s five-acre land parcel for Rs 65 crore by Infosys clearly indicates that IT companies are looking for more physical space.

The land was bought for Rs 13 crore per acre and is Infosys’ second major real estate transaction in six months. In January, Infosys had bought a 300,000-sqft tech park near its Electronics City campus for Rs 115 crore from Essar Group. By June, it bought 41.2 acres of land - in Bangalore, Delhi-NCR, and Mysore. In Delhi-NCR, it bought 27.6 acres. This indicates there is plenty of business expected in the next 5-10 years’ time.

No one makes large purchases without having a plan in the near and future term. Infosys owns and operates 36.78 million sqft of built-up office space.