The company aims to monetise its real estate in order to generate cash to pay off its debt obligations following the ratings downgrade of its group companies
Businessman Anil Ambani is in talks with a group of global private equity firms to either sell his Mumbai headquarters or lease it out for the long term, reports The Economic Times.
The Reliance Centre in Santacruz is likely to fetch around Rs 1,500-2,000 crore, but the company expects to garner around Rs 3,000 crore, the report stated.
Moneycontrol could not independently verify the report.
With both options on the table, Ambani is said to be in talks with Blackstone and another US-based fund, sources told the paper. However, the legal tangle in which the site is caught up could pose a roadblock to the sale of the 700,000 square feet Reliance Centre.
Ambani plans to return to his Ballard Estate office in South Mumbai, the report said. The company aims to monetise its real estate to generate cash to pay off its debt obligations following the ratings downgrade of its group companies. International property consultant JLL may be appointed to advice on the deal, sources told the paper.
After clearing Adani Transmission’s purchase of Reliance Infrastructure’s retail electricity distribution in 2017, the Maharashtra Electricity Regulatory Commission (MERC) ruled that since the Santacruz headquarters was kept out of the deal with Adani, the latter could not seek concessions to build office space as a similar leeway had already been granted to R- Infra, the report quoted sources as saying.
A case is also pending before the Appellate tribunal for Electricity (APTEL) after a group of consumers approached the energy tribunal, arguing that the land should either be transferred to Adani Transmission or users must be granted a concession on their bills equivalent to the sale value of about Rs 2,000 crore.Recently, Ambani told the newspaper that Reliance Capital is adopting the 'death of debt' mantra and the group plans to bring down its debt by 50 percent through stake sales this fiscal.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.