Realty firm Parsvnath Developers has sold 140 acre land at Sohna, Gurgaon, to Supertech Ltd for Rs 665 crore as part of plans to divest non-core assets to cut debt and complete ongoing projects.
With this deal, Kotak Realty Fund has exited this township project. It had invested Rs 110 crore in the project in 2012.
According to sources, Parsvnath has entered into agreement with another builder Supertech, selling the land for Rs 665 crore. Of 140 acre, 100 acre is licensed and the approval for 40 acres is expected shortly.
Parsvnath had last week informed the BSE that it has transferred the land and development rights in the township project to Supertech but did not give any financial details.
When contacted, Parsvnath Developers Chairman Pradeep Jain said: "We have monetised this asset as per the company's strategy to reduce the debt and strengthen the execution of ongoing projects".
When asked about the size of the deal, he did not make any comments.
Parsvnath has a debt of about Rs 1,200 crore, which will come down after this deal.
As part of the monetisation plan, the company is looking to either sell the land parcels in South-West India or form joint ventures with local builders for development. These land parcels in different cities of south and western states are worth about Rs 1,000 crore.
In the company's annual report, Jain told shareholders that the company has laid out a clear set of priorities for the next 12-24 months to improve profitability.
"The strategic focus is on assessing and evaluating our assets, business and markets, and accordingly sell non-core assets that are not aligned with our core business in terms of development potential. We are also working towards asset monetisation by raising long-term capital to reduce the debt," he added.
Parsvnath has called the annual general meeting (AGM) on September 23 to seek shareholders' approval to raise up to Rs 1,000 crore through private placement of non-convertible debentures (NCDs).
The company is executing about 50 projects with a total area of about 80 million sq ft. It posted a net profit of Rs 16 crore over a turnover of Rs 561 crore last fiscal.
Noida-based realty firm Supertech has entered into Gurgaon property market and is looking to expand its presence in the IT city.
