GMR Infrastructure, which owns more than 900 acres in Delhi and Hyderabad airports, is planning to raise Rs 3,000 crore through land securitisation. The company, which has a presence in the airport, power and road sectors, will lease out 250 acres of land at Delhi airport for 30 years. |
Madhu Terdal, CFO, corporate strategic finance, said the company would invite bids from international majors to raise the fund. "The bids could be made either for individual blocks or for the entire stretch," he said. |
Last year, GMR bagged the contract to develop the Delhi and Hyderabad airports, which handle around 30 per cent of the country's air traffic. |
According to the agreement with the Central government, the company is not allowed to sell the land to a third party, but can lease it out for expansion projects. "GMR will have to invest Rs 8,600 crore by 2010 in the Delhi airport to complete the project before the Commonwealth Games. The company will be raising Rs 4,400 crore via pure debt and Rs 1,200 crore through internal accruals and equity," the company sources said. GMR Infrastructure will kickstart investors' meetings in the UK and the US on Monday. |
Financial closure for the Delhi airport is expected in the next three to four months and ICICI Bank has been selected as the lead arranger for debt fund. The prime 250-acre land in Delhi is likely to attract IT and ITES parks, business hotels, business & industrial parks, retail malls, entertainment plazas and residential complexes. Jones Lang LaSalle, which has been appointed by GMR for the property development strategy, will submit its final report next month. |