Parsvnath sells 140 acres of land to Supertech for Rs 665 crore
Parsvnath had last week informed the BSE that it has transferred the land and development rights in the township project to Supertech
Sep 21, 2014
Source : The Economic Times
Parsvnath Developers

 

NEW DELHI: 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 acre 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.

Latest Realty News

Developer may oppose rehabilitation of slum-dwellers on Mumbai airport land
Sep 21, 2014
The on-site rehabilitation of slum-dwellers on airport land is likely to face opposition from developer HDIL
Govt attaches chit fund cos land
Sep 21, 2014
The state government took possession of over 12 acre in Ganjam district belonging to two chit fund companies, Artha Tatwa (AT) and Golden Land Private Limited
DDA hikes FAR for plots over 750 sq m
Sep 20, 2014
The Delhi Development Authority (DDA) is planning to go to court to allow for an increase in dwelling units in plots of 750 sq m and above
Government relaxes patta norms for flat sale
Sep 20, 2014
Ending the six-month deadlock over transaction of flats, the state government on Friday relaxed registration norms for apartments during purchase. From now on, record of rights (ROR), called patta in local parlance, would not be a prerequisite
Odisha land scam, 7 held
Sep 20, 2014
The Economics Offence Wing (EWO) of the state crime branch arrested seven persons, including four government officials, in the multi-crore land scam in Ghangapatna on the city outskirts
Govt to revise real estate Bill: Naidu
Sep 20, 2014
Housing and Urban Development Minister Venkaiah Naidu said the revised Real Estate (Regulation and Development) Bill, due soon, was not aimed at over-regulation of the sector
Taxation, regulatory issues may trip REITs success: KPMG-IVCA
Sep 20, 2014
Real Estate Investment Trusts (REITs) could be a game changer for the realty sector, but lack of clarity on taxation and regulatory aspects might act as roadblocks for attracting foreign investments in the commercial space
Indians among top property buyers in Dubai
Sep 20, 2014
Indians constitute a dominating group while buying real estate in Dubai, having invested nearly AED 10.5 billion during the first half of this year
Housing prices drop as investors prefer equity over realty
Sep 20, 2014
The rapid rise in the stock market since the new government was formed has taken the sheen off real estate, where investments have not only dropped but investors are trying to monetise their existing assets, creating a scare of price correction
MCG chief in panel to approve building plans
Sep 19, 2014
Building plans for plots will now be sanctioned by a new committee formed by the Urban Local Bodies department. The committee includes the chief town planner, senior town planner and MCG chief engineer among others

Latest Realty News Of State

Realty Talk's