Mumbai International Airport Pvt Ltd (MIAL), a subsidiary of GVK Power and Infrastructure, has leased a land parcel with 1.166 million sq ft developable area to Oasis Realty Pvt Ltd for $95.7 million or (Rs 580 crore), as per a stock market disclosure.

This marks the beginning of monetisation process of commercial assets by the company to pare debt.

The company is currently developing GVK SkyCity, a mixed use development that will house hotels, serviced apartments, convention and entertainment centres and office space. The land deal forms a part of the process of the company to overall develop commercial development of 22 million sq ft in phases over a period of 10 years.

GVK Reddy, executive chairman, MIAL, said, “Our vision for GVK is to develop a vibrant 24*7 business and leisure hub and a global convention and hospitality destination.”

This announcement comes a month after GVK said it is in preliminary talks with investors to sell stake in two businesses to reduce debt. It had said that the company is looking at raising equity at the airport holding company, to retire the debt raised for the airport acquisition and is in discussion with a few investors for the same.

GVK’s airport holding company GVK Airport Holdings is part owner and operator of two airports in the country—Mumbai and Bangalore airports. GVK Mumbai Airport Pvt Ltd is a PPP joint venture between GVK-led consortium and Airport Authority of India (AAI). It had previously acquired stake held by some other partners in the separate projects and had taken debt to hike its holdings.

Oasis Realty, a part of Kamala Group, has presence across real estate, power, hospitality, fashion, HR solutions and tour & travels.

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