New Delhi: As parts of its plan to reduce debt, Indiabulls Real Estate Ltd (IREL) has sold off its property in London to a firm owned by its promoters for Rs 1,830 crore.
“company’s wholly owned subsidiary has divested its entire stake in Century Ltd, which indirectly owns Hanover Square property, London to Clivedale Overseas Ltd, an entity owned by the promoters of the company,” the company said in a regulatory filing. Century Ltd is now no longer a subsidiary of IREL.
An additional loan of 133 million pounds is needed to complete Hanover Square but the company said it would not like to have the additionally liability on its own balance sheet.
“To reduce debt and to focus more on Mumbai and NCR (National Capital Region) markets, the board, had on earlier date authorised and approved divestment of the company’s direct or indirect stake in London property,” IREL said.
It may be recalled that the shareholders of the company had approved IREL’s plans to sell off Hanover Square to the promoters for 200 million pounds.
IREl has been trying to focus only on financing business and exit the real estate segment. Towards this end, it had sold off 14 per cent stake to Embassy Group for Rs 950 crore.