HDIL to sell commercial complex in Mumbai : debt-reduction strategy
There is a new trend which is visible in the market. The realty sector is grappling with the economic slowdown and reeling under the pressure of debts. To reduce the debt burden, many realty players are selling off their debts and using that fund to partially pay off their debts. Following the same path, realty developer Housing Development and Infrastructure (HDIL) has put its nearly 1 million square feet commercial complex at Kurla in Mumbai on the block as it seeks to reduce debt.
This under-construction property is called Premier Commercial and HDIL is hoping to raise over Rs 500 crore through the sale. People familiar with the transactions mentioned that the developer is currently in talks with two entities including a private equity fund, that has already started due diligence for the property.
This transaction is expected to be completed in the next 45 days and bring a lot of relief to the debt laden HDIL. The construction of this project started in in late 2010 and about 70 % of the project is already completed by HDIL.
Earlier in order to monetise the project, HDIL was considering to convert the commercial project with large floor plate area of 2-lakh square feet into a residential project. However after considering all the options HDIL has decided to completely offload the project to support its debt-reduction strategy.
Source- The Economic Times (Mumbai Edition)
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