Lenders of debt ridden Reliance Communications have approved the sale of its real estate assets in Delhi and Chennai to Canada-based asset management firm Brookfield.
Lenders of debt ridden Reliance Communications have approved the sale of its real estate assets in Delhi and Chennai to Canada-based asset management firm Brookfield, said a source.
"Lenders have approved sale of real estate assets RCom holds in Delhi and Chennai for Rs 801 crore to Brookfield," a source privy to the development told PTI on condition of anonymity.
When contacted RCom declined to comment on the development, while email query sent to Brookfield elicited no reply.
The proceeds will be used for retiring debts, the source said.
As part of its asset monetisation plans, RCom has been working on finding investors or buyers for prime real estate assets, including at Dhirubhai Ambani Knowledge City, Navi Mumbai, measuring nearly 125 acres with development rights of potentially over 17 million sq ft and prime property of 4 acre near Connaught Place, New Delhi.
RCom, reeling under Rs 45,000 crore debt, is in a standstill period (for interest and principal repayments) till December 2018 and expects to complete the SDR process as per the RBI guidelines.
RCom is also in talks with Brookfield for selling its mobile towers.
The company expects telecom tower and real estate businesses to help pay off Rs 27,000 crore.On October 30, RCom said that it plans to pay debt of 27,000 crore through asset monetisation, Rs 7,000 crore through equities and carry forward debt of Rs 6,000 crore to new business.