Indiabulls Real Estate Ltd. said shareholders have approved a proposal to sell its London property to promoters for £200 million in an annual general meeting held on Sept. 28.
The resolution to sell the London property has been approved by the requisite majority of shareholders, according to an exchange filing. Earlier, the company had disclosed its plans to focus on its India business and cut down on debt.
“In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish. The Great Britain pound has also had a sustained depreciation from around the time of Brexit referendum result,” the company said in the notice for AGM.
The continued uncertainty associated with Brexit continues to provide headwinds against the London property market as well pound as a currency, it said.
As per assessment with lenders, a further loan of about £133 million is to be availed to complete the ongoing construction on 22 Hanover Square property (London property) and the company would not like to incur this further additional debt on its own balance sheet, at this point, the statement said.
“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,” it said.
It also informed that the promoter of the company has come forward to acquire the London property for an aggregate consideration of £200 million, which is significantly above the cost of its acquisition, £161.5 million. CBRE, U.K. has recently valued the property at £189 million.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
