Hindustan Unilever Ltd (HUL) is selling a property in Bangalore, which was proposed to be developed as a special economic zone (SEZ), to Brigade Properties Pvt Ltd, a joint venture between Bangalore-based developer Brigade Group and Singapore's sovereign wealth fund GIC, it said on Wednesday.
The country’s largest fast moving consumer goods (FMCG) company owns the property through its wholly owned subsidiary Brooke Bond Real Estates Private Limited (BBREPL). It had entered into an agreement with Brigade last September to divest its stake.
The firm did not share information on the deal value.
The property spread across 10.72 acres, had received approval to be developed as an SEZ in 2010. It has applied for an approval to exit the proposed SEZ property and is awaiting a green signal.
It could not be immediately ascertained if HUL will retain some stake in the property or sell all of it.
An email written to a spokesperson of HUL seeking details on the deal did not elicit any response till the time of filing this report. Brigade Group spokesperson could not be contacted immediately.
Brigade Group had entered into a Memorandum of Understanding (MoU) with GIC to jointly invest up to Rs 1,500 crore ($247 million) in residential developments in select cities of South India in September last year.
It had said that the JV aims to acquire land for residential and mixed use developments in cities reporting strong secular demand for residential units.
It is not clear if the scope of the JV will be expanded to include office properties or the partners plan to convert the project into a residential development.
One of the known properties under the JV is Brigade Cosmopolis, a residential project in Bangalore.