Indiabulls Real Estate Ltd (IREL) said on Saturday that its wholly-owned subsidiary has divested the entire stake in Century Ltd to Clivedale Overseas Ltd, an entity owned by the promoters of Indiabulls Real Estate for 200 million pounds (about Rs 1,830 crore).
Century Ltd indirectly owns London-based Hanover Square property.
"This has been approved by shareholders of the company without participation of promoters and promoter group," said Indiabulls Real Estate in regulatory filings at stock exchanges.
"With this, the Century Ltd ceases to be a subsidiary of the company," it said.
Indiabulls Real Estate has been wanting to focus only on Mumbai and the National Capital Region markets, Hence the decision to divest Century Ltd, the parent company that houses the upscale Hanover Square property.
The company had purchased this property for 161.5 million pounds (about Rs 1,478 crore).
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In September, Indiabulls Real Estate had signed a term sheet agreement with Blackstone Group Inc to offload its remaining 50 per cent stake for about Rs 4,420 crore.
The deal was part of the Indiabulls Group's plan to exit real estate and focus on financial services. However, the Delhi High Court is hearing a public interest litigation (PIL) alleging fund diversion and accounting irregularities by its promoters.
And the Reserve Bank of India (RBI) has rejected the home financier's proposed merger with private sector lender Lakshmi Vilas Bank.
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