Mumbai-based Neptune Group and Lodha Developers have submitted their offers for Gammon India’s 185 acre land in Dombivli. The company put its asset on the block for a while now and is looking to monetize as they close this financial year.
Also read: Realty sector may see improvement in next 6 months: ReportThe total plot size is about 185 acre which was put on the block in mid 2013. Sources say, Neptune Group has made an offer of about Rs 750 crore while Lodha Developers is also close.
The issue around the plot sale was always around its valuations. Gammon purchased the property from Pal Peugot in 2011 for a sum of Rs 726 crore. Analysts says the current market price of the plot is about Rs 1100 crore and the offer price is clearly way below the market price and this is due to the subdued market conditions affecting the real estate sector in India.
Sources say, the valuation sought for land parcel has been the key reason for the delay in closure of the transaction. But property consultant, Cushman & Wakefield’s advise has been sought.
This will be a crucial deal as Gammon India in the process to reduce debt and the company's debt stands at Rs 4000 crore currently.
Furthermore, Gammon India is in corporate debt restructuring (CDR) with ICICI Bank & Canara Bank being its lead lenders. Analysts say if this deal goes through in the expected time frame, it will serve as a slight breather for Gammon India.
On contacting, Gammon India's management denied any development on the transaction.
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