Supertech may sell some of its malls, hotels to raise ₹1,000 crore

firm Supertech Ltd plans to divest some of its shopping malls and hotels in smaller Tier-II cities and raise around ₹1,000 crore, which will be used to generate liquidity for the business and to reduce debt, a top company executive said.

Separately, the firm expects to deliver 17,000 residential units, which will generate receivables of around ₹1,000 crore from its customers by end of December 2018. It will use the capital to repay debt and complete projects.

From its mall and hotel portfolio, the developer plans to monetise two malls in Haridwar and Meerut, and its Radisson Blu hotel in Rudrapur and Country Inn & Suites in Meerut.

“We have hired consultants for the monetisation of these assets. Along with the cash flows that are expected by handing over the homes to customers, we can use the capital to reduce our debt as well resolve liquidity issues,” Supertech chairman R K Arora said in a telephone interview.

In December, Supertech said it raised ₹430 crore from Altico Capital India Pvt. Ltd, a non-banking financial company (NBFC), for its Capetown project in Sector-74, Noida, and partly to refinance an existing lender.

“We have fast-tracked our operations and are determined to deliver all our projects on time. We have well-maintained escrow accounts for all projects and are committed to comply with RERA norms,” Arora said. A number of residential project developers, who ventured into retail mall and hotel development, have been divesting portfolios to focus on their core business of building homes. Monetisation of non-core businesses has been adopted at a time when they are reeling under liquidity crunch and residential sales remain tepid.

BENGALURU:Realty