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Indiabulls Real Estate Plans To Sell Its London Property

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Indiabulls Real Estate Plans To Sell Its London Property

Indiabulls Real Estate is all set to sell its London property for GBP 200 million to reduce its debt and pays more attention to its operations in India

Indiabulls Real Estate has plans to sell its London property to promoters for GBP 200 million which is approximately Rs 1,800 crore. This sale proposal aligns with its plans to focus on its operations in India and reduce debt. Speaking about the company’s debts, the net debt stood at Rs 4,590 crore at the end of the fourth quarter of 2018-19 fiscal. However, if the sale happens, the debts will be reduced considerably to Rs 3,000 crore.

Indiabulls Real Estate said in an analyst presentation that the company had decided to focus only on Mumbai and NCR markets and hence had decided to divest Century Limited, the parent company that houses Hanover Square property, London. The London property market is experiencing a slowdown due to Brexit related issues. The promoter has agreed to buy the parent company of London asset for GBP 200 million. The company had purchased this property for GBP 161.5 million and the current valuation is GBP 189 million. The transaction is not yet finalized and is subject to approvals from shareholders.

The company said that it is a related party transaction and hence promoter will not have a say in the voting. It has to be noted that Indiabulls Real Estate reported a 95 percent decline in its net profit. The profit for the fourth quarter of the last fiscal was Rs 108.56 crore. The sharp decline in the profit is evident from last year’s profit that stood at Rs 2,181.13 crore. In the January-March quarter of the 2018-19 financial year, the total income of Indiabulls Real Estate declined to Rs 2040.61 crore from Rs 3244.25 crore in the corresponding period of the previous year.

 

Source: Money Control

ALSO READ: Blackstone Buys 50% Stake In Indiabulls’ Gurugram Offices

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