Parsvnath to sell prime land in Delhi for about Rs 700 cr to reduce debt
The company has two housing projects and several shopping malls at metro stations in Delhi.
Realty firm Parsvnath Developers is looking to sell 1.18 acre of commercial land near Connaught Place in the National Capital for about Rs 700 crore in order to reduce debt.
The company had acquired the land at Kasturba Gandhi Marg in 2008 for about Rs 200 crore and had announced plans to develop retail-cum-office building at the location.
Parsvnath Developers has invited bids for sale of this property and is expecting a sales realisation of Rs 700 crore, market sources said, adding that property consultant Jones Lang LaSalle has been roped in for this purpose.
When contacted, Parsvnath Developers Chairman Pradeep Jain told PTI: "Yes, we are monetising our assets to deleverage the company's balance sheet".
He, however, declined to share details. Parsvnath Developers has a net debt of about Rs 1,200 crore and plans to reduce it to about Rs 500 crore through sale of this prime property, sources said, adding that the deal could be finalised by the end of next month.
The company has two housing projects and several shopping malls at metro stations in the National Capital. It is setting up an office-building on Bhai Veer Singh Marg near Gole Market here with an investment of Rs 225 crore.
Besides, the company had bought in 2010 a 38 acre of land near Sarai Rohilla from the Railways for Rs 1,651 crore, making it the second biggest land deal in Delhi.
Parsvnath, in partnership with private equity firm Red Fort Capital, plans to provide luxury housing and commercial space in this project.
The company, which has a land bank of about 200 million sq ft, posted a consolidated net profit of nearly Rs 30 crore over a revenue of Rs 255 crore for the quarter ended September 30, 2011.