Es­sar to sell of­fice build­ings in Mum­bai

HT Estates - - FRONT PAGE - Press Trust of In­dia ht­es­tates@hin­dus­tan­times.com

NEWDELHI: Es­sar Group is in talks with global in­vest­ment firm Brook­field to sell its 1.25 mil­lion sq. ft Equinox Busi­ness Park at Ban­dra-Kurla Com­plex(BKC) in Mum­bai for about Rs2,400 crore, ac­cord­ing to peo­ple in the know.

The group had an­nounced in 2016 that it would sell the prop­erty to realty firm RMZCorp, but the deal could not be con­cluded. It is now in the ad­vanced stage of talks with Canada-based Brook­field As­set Management to sell Equinox Busi­ness Park, which has four build­ings, the peo­ple in the know said.

The deal is ex­pected to close this month for around Rs2,400 crore, they said, adding that Es­sar would utilise the en­tire sale pro­ceeds to re­pay loans. The group is re­duc­ing its debt by mon­etis­ing non-core as­sets. Once the Equinox deal is com­pleted, the to­tal debt re­duc­tion will amount to Rs77,500 crore in the cur­rent fis­cal, they said.

The group has al­ready re­duced its debt by Rs72,600 crore fol­low­ing the com­ple­tion of the Es­sar Oil sale to Ros­neft and a con­sor­tium of Trafigura and UCP. In April last year, Ruias-led Es­sar Group also an­nounced the sale of its busi­ness process out­sourc­ing (BPO) com­pany Aegis Ltd to Sin­ga­pore-based pri­vate eq­uity fund man­ager Cap­i­tal Square Part­ners for an es­ti­mated $300 mil­lion. The agree­ment with the Ben­galuru-based RMZ lapsed be­cause the two par­ties were un­able to agree on fi­nal terms even af­ter 23 months from the sign­ing of the agree­ment.

Un­like the hous­ing sec­tor, the com­mer­cial real es­tate, es­pe­cially the of­fice seg­ment, is per­form­ing fairly well and has been at­tract­ing hugein­vest­ment from do­mes­tic and for­eign in­vestors.

Re­cently, realty ma­jor DLF’s pro­mot­ers con­cluded the sale of their 40% stake in rental arm DLF Cy­ber City for nearly Rs12,000 crore.

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