Unitech Corporate Parks, a Unitech group firm listed in London, on Wednesday said it will sell its entire 60 per cent stake in six IT Special Economic Zone/Park projects in India to global realty firm Brookfield for over Rs 2,000 crore.
Unitech Corporate Parks (UCP) said in a filing to London Stock Exchange (LSE) that it has entered into an agreement with Brookfield Property Partners for the sale of the assets. The remaining 40 per cent stake in the six projects lies with Unitech, which has also sold its complete holding in four of the projects to Brookfield for over Rs 1,500 crore.
"The disposal agreement provides that Brookfield will acquire Candor, subject to certain conditions, for an aggregate cash consideration of approximately 205.9 million pound," UCP said in the filing.
Candor Investments is the holding company for UCP's interests in its six realty projects.
Following this deal, UCP will left with no asset and practically it will cease to exist.
"The offer for UCP's property interests from Brookfield at above the latest book valuation reflects the hard work put in over recent years to let the office space and grow income, in order to achieve the best possible price on behalf of investors in the company," UCP chairman Donald Lake said.
UCP, which got listed on Alternative Investment Market of the LSE in 2006, had invested in Unitech's six IT SEZ/Park projects - two in Gurgaon, three in Noida and one in Kolkata.
Unitech holds a 13.7 per cent stake directly in UCP, which had raised 360 million pounds in 2006 via IPO to invest in Indian commercial real estate.
On the remaining 40 per cent stake of Unitech in the six projects, Unitech informed the BSE that it has divested its entire holding in four of the properties.
"These four SEZs are the most mature in terms of their development status. As part of this transaction, certain affiliates of Unitech will continue to manage and develop these assets to ensure that there is no impact on tenants and other stakeholders," it added.
Although the company has not mentioned any deal size, an industry source said the Gurgaon-based realty firm has sold its stake for over Rs 1,500 crore.
"The company is likely to utilise most of the money in refinancing its debt. After this, the consolidated debt of Unitech is likely to come down by Rs 1,500 crore," he added.
As on March 31, 2014, Unitech's consolidated net debt was Rs 6,316 crore. Net debt to equity ratio stood at 0.55.
Shares in Unitech, on Wednesday, ended at Rs 33.95 apiece on the BSE, down 7.11 per cent from the previous close.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
