Indiabulls Real Estate sells London properties to developers for 200 million pounds
New Delhi, November 2 () Indiabulls Real Estate said Saturday that it sold its property in London to a company of the promoter group for 200 million pounds (around Rs 1,830 million rupees) as part of its plan to focus on the business of India and reduce debt.
At its annual general meeting (AGM) on September 28, the company's shareholders approved a proposal to sell their property in London to developers for £ 200 million.
In a presentation to BSE, Indiabulls Real Estate said the company's wholly owned subsidiary has ceded all of its stake in Century Ltd, which indirectly owns the property of Hanover Square, London, to Clivedale Overseas Ltd, an entity owned by the developers of the company.
With this, Century Ltd ceases to be a subsidiary of the company.
Previously, the company had revealed its plans to focus on its business in India and reduce debt.
In light of the continuing problems related to Brexit and the uncertainty around it, London's real estate market is still slow. The pound sterling has also had sustained depreciation from the moment of the outcome of the Brexit referendum, the company said in the AGM notice. .
Indiabulls Real Estate had said that an additional loan of approximately 133 million pounds was needed to complete the ongoing construction at 22, owned by Hanover Square in London. However, you would not like to incur this additional debt in your own balance.
To reduce debt and focus more on the Mumbai and NCR (National Capital Region) markets, the board had previously authorized and approved the divestment of the company's direct or indirect ownership of London property, he said.
The promoters of the company advanced to acquire the property of London for a total consideration of 200 million pounds against the cost of its acquisition at 161.5 million pounds, Indiabulls had said.
In June of this year, Indiabulls Real Estate developers sold 14 percent of the company through open market transactions to the Embassy Group for Rs 950 crore as part of their strategy to focus on financial services and exit the real estate business
However, last month, Indiabulls Group faced a setback when the RBI rejected the proposed merger of Indiabulls Housing Finance with the troubled private sector lender Lakshmi Vilas Bank.
Speculations abounded about the fate of the merger, announced in April this year, after the Reserve Bank of India (RBI) imposed restrictions on Lakshmi Vilas Bank due to its weak financial status. To enter the banking space, Indiabulls Group has been selling several finished commercial properties to the American private equity firm Blackstone. MJH ABM ABM