September 17, 2019 / 16:18 IST
The Blackstone Group has signed a definitive agreement to purchase the Global Village Tech Park, which is owned by a subsidiary of Coffee Day Enterprises (
CDEL), for about Rs 2,770 crore, reported
The Economic Times.
American asset management company, along with South-based developer Salarpuria Sattva, will acquire the information technology-focused business park and that a formal deal announcement was expected by September 17 as per the report.
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The report noted that Tanglin Retail Realty, the subsidiary that owns the park, was close to signing a term sheet about Rs 2,575 crore in December last year. Blackstone has now revised the deal upwards by about Rs 150 crore as a goodwill gesture.
The sale of the tech park to Blackstone is expected to reduce the company's debt to
Rs 1,000 crore, according to a release filed with the exchanges. The report noted that the Coffee Day Enterprises' total debt was Rs 4,970 crore as of August 17.
The deal details were being speculated after CDEL said in an exchange notification last month on August 14 that a non-binding letter of intent was signed with Blackstone. This was after the board of CDEL approved the divestment of the realty arm.
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