HYDERABAD| BENGALURU : Telangana's largest industrial house My Home Group has teamed up with office space specialists RMZ group to build a 10million sq ft property in Hyderabad. The more than ` . 6,550-crore ($1billion) office-space project, touted as the country's largest, is coming up on a 10-acre piece of land in Hyderabad's upmarket Hitec City . The two companies will contribute equally towards the project cost, said two persons in the know.“It is the largest office project in the country so far,“ said global property consultant Cushman & Wakefield's Hyderabad managing director Veera Babu. My Home and RMZ did not respond to ET's queries seeking details on the transaction.However, another property consultant said, “My Home Group, the cement to construction conglomerate, was in talks with some of India's largest real estate players with specialisation in office space for this project and has finally frozen the joint venture deal with RMZ recently .“Tishmen Speyer and Bengaluru-headquartered Brigade Group were said to be among half a dozen realty players weighed by My Home to team up for the project, he said, requesting anonymity. Another person, who did not want to be named, said a 50:50 joint venture agreement was entered into by My Home Constructions with RMZ. “Work on the office space project, to be known `The Sky View', has started and the first phase of the project involving 3.5 million sq ft should be ready by December next year,“ he said. “The project will be jointly developed and managed by My Home and RMZ.“My Home Group, founded by industrialist Jupally Rameswar Rao, has over 10 million sq ft of built-up residential and commercial real estate space.Last year, it launched about 16 million sq ft of projects to be completed in three years, involving about . 5,000 crore in investment. “My ` Home wanted to increase its exposure to the office segment but it lacked expertise and hence it decided to bring in a developer who specialises in the quality office space,“ said one of the persons quoted above.The JV arrangement with My Home helps RMZ, which had built its first office space property `RMZ Futura' in 2001-02, to re-enter the highly promising Hyderabad office realty market.Buoyed by improving prospects for office realty in Hyderabad and shortage of quality office space, the Bengaluru realty firm has been scouting for land to develop office space and was also in touch with the local government for it, said the property consultant quoted above.Hyderabad, which has the lowest vacancy levels for office space among the top seven metros, has witnessed the second largest office space absorption after Bengaluru at 7.5 million sq ft, apart from 2.3 million sq ft of pre-commitments last year. The city's IT Corridor, comprising Madhapur, Kondapur, Raidurg and Hitec City and Gachibowli, continued to dominate office space leasing, with majority of the leasing activity driven by IT ITeS and BFSI firms.“It is a big thing for Hyderabad that RMZ, which is a grade-A developer and has proven its work in terms of quality , is coming to the city ,“ said Veera Babu of Cushman & Wakefield. “When such developers come in, they provide an easy entry for their existing clients in the city who are operating in their parks in other cities, enhancing the access of multiple corporates to Hyderabad.“Veera Babu said the proposed joint venture office space property of My Home and RMZ adds an immediate supply of grade-A office space in Hyderabad, leading to higher market availability of overall office space.Family-owned RMZ, which is weighing options to list office properties by middle of this year, is looking to raise a second round of funds from Qatar Investment Authority (QIA) to acquire commercial spaces in Bengaluru, Hyderabad, Chennai, Pune and National Capital Region.The realty firm, with a portfolio of over $3.5 billion and 20 million sq ft of office space, had raised $300 million from QIA in 2013. Eyeing an overall portfolio of 80 million sq ft of office space by 2020, RMZ had also acquired in January this year 100% stake in Essar Commercial group project Equinox Business Park in Mumbai's Bandra-Kurla Complex for about ` . 2,400 crore.