Lanco Infratech Ltd is seeking buyers for a real estate business it values at Rs2,700 crore, said a person with direct knowledge of the matter.
The company has asked investment banks to submit proposals to manage the sale, said the person, who asked not to be named as the details are confidential. Assets for sale include a 100-acre (40 hectare) residential and commercial property called Lanco Hills in Hyderabad, the personsaid.
Lanco, with net debt of Rs26,600 crore as of March 31, is seeking to exit peripheral businesses and focus on power. The company also plans to raise as much as $750 million by selling a stake in its power business, according to the person.“Real estate is a non-core asset and we are not looking at building our project pipeline in this segment,” Philip Chacko, director for investor relations at Lanco, said.
He declined to comment on the sale or valuations. Lanco had Rs1,410 crore of cash at the end of March, data compiled by Bloomberg show.
Lanco Hills, primarily a residential township, has plans or offices, hotels and one of the world’s tallest residential towers, according to the development’s website. In May, Supreme Court overruled a lower court decision that had stopped the company from selling the properties to third parties. Lanco said the ruling removed “all hurdles towards the development of the entire project.”
Lanco, which has another 50 acres of land under development in Chennai in southern India, is seeking Rs2,000 crore for the Hyderabad property and Rs700 crore for the Chennai assets, the person said. Bloomberg
Source:www.dnaindia.com
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