Neptune, Lodha look to buy Gammon India Mumbai plot
Mumbai-based Neptune Group and Lodha Developers are looking to Gammon India’s 185 acre land in Dombivli. They have also submitted their offers for the same. The plot is about 185 acre in size and was put on the block in mid 2013. It has been learnt from the sources that the offer of the Neptune Group is about Rs 750 crore while Lodha Developers is also close.
Gammon is facing issue around the valuations of the plot. Gammon purchased the property from Pal Peugot in 2011 for a sum of Rs 726 crore. The current market price of the plot as per the analysts is about Rs 1100 crore and the offer price is clearly way below the market price which has been attributed to the subdued market conditions which are affecting the real estate sector in India. Property consultants, Cushman & Wakefield’s have been sought to advice on valuations.
This will be a crucial deal as Gammon India in the process to reduce debt and the company’s debt stands at Rs 4000 crore currently.
Analysts are of the view that if this deal goes through in the expected time frame, it will serve as a slight breather for Gammon India. As the company is in corporate debt restructuring (CDR) with its lead vendors: ICICI Bank and Canara Bank.
Source: MoneyControl.com
Canara Bank, CDR, corporate debt restructuring, Cushman & Wakefield, Dombivli, Gammon India, ICICI Bank, Lodha Developers, market conditions, Mumbai, Neptune Group, Pal Peugot, Property Consultants, Real Estate Sector
