In order to ease its debt burden, realty developer Indiabulls Real Estate is looking to sell its Chennai commercial asset One Indiabulls Park for around Rs 1,200 crore, according to a report in The Economic Times.
The company is in advanced talks with global private equity (PE) houses like Blackstone Group, Brookfield Asset Management and Xander Group, sources said.
They confirmed that the proceeds from the Blackstone deal and the sale of Chennai properties will be used to repay the company’s debt and bring net debt to under Rs 2,000 crore.
Other properties on sale
The realty major has also sold its Chennai residential development project for around Rs 300 crore as part of its asset monetisation plan.
Indiabulls Real Estate has also sold 50 per cent stake in two of its properties in Mumbai - one is One Indiabulls and the other is Indiabulls Finance Center to Blackstone Group for USD 730 million or Rs 4,750 crore. The deal is expected to conclude by the end of this month.
The developer has entered into executed definitive transaction documents with Blackstone Group LP to divest 50% stake in subsidiaries Indiabulls Properties Private Ltd and Indiabulls Real Estate Co. Pvt. Ltd at an aggregate enterprise value of $1.46 billion or Rs 9,500 crore.
Revenue generation from the sold and on sale properties
The residential development Indiabulls Greens, Chennai, has 2.07 million sq ft of saleable area and according to the company’s most recent earnings release, around 63 percent of the project is sold and handover of flats has begun.
One Indiabulls Park, Chennai, is a 1.9-million-sq-ft commercial office asset and houses tenants such as Royal Bank of Scotland, YES Bank, Vodafone, BSNL and Britannia Industries. The property is 90% leased and generates annual rent of Rs 75 crore, which is expected to rise to Rs 95 crore by 2019-20 owing to rental escalation clauses.
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