Parsvnath Developers Ltd, a north-based listed real estate company, has entered into a transaction with Supertech Limited for transfer of developments rights of a 107 acre land parcel on Sohna Road, Gurgaon, the company said in a stock market disclosure.
The deal has also seen transfer of shares held by Parsvnath in Honey Builders Limited, with which it has joint development rights, to Supertech.
The announcement comes almost a year after VCCircle first reported that the senior management of Parsvnath may switch its plans to develop township on the land parcel on Sohna Road, Gurgaon and liquidate the large asset to clear debt. VCCircle had also first reported that the developer was in advanced stages of discussion with Supertech to sell the land parcel.
Although the financial terms of the transaction was not made public, sources in the industry indicate that this marks conclusion of one of the biggest asset liquidation moves by the debt-laden company. One source said that the deal has fetched the developer around Rs 700-750 crore (or $120 million).
This asset monetisation is in line with the current focus and strategy of the company to sell land parcels to pare debt. Currently, the debt of the company stands at Rs 1,200 crore and it aims to be a debt free company by the end of this financial year.
Early this year, it had announced that it will monetise its assets in South and West India either through joint ventures with local builders or outright sale of plots to pare debt. Parsvnath has 85 acres of land in Kochi, of which 50 per cent has already been notified as Special Economic Zone. It has 35 acres in Chennai and 75 acres in Mysore.
For Supertech, it comes as a step ahead in its plan to launch three-four projects in Gurgaon. Sources in the industry indicate that the developer is focused on this part of Delhi NCR and will be coming out with some more projects here in the coming quarters.
The realty firm, which has around 90 million sq ft under construction, has three projects – Araville, 48 Canvas and Hues – in Gurgaon, with Hues being the latest in its Gurgaon portfolio. It recently raised Rs 400 crore from The Xander Group for its upcoming township project in Gurgaon.
A major portion of its portfolio is spread across different sectors of Noida. It hit headlines recently when its Noida project Emerald Court got entangled in litigation with the Allahabad High Court ordering demolition of the 40-storey residential twin towers.
It has significant presence in Meerut, Ghaziabad, Bangalore and Moradabad, too.
(Edited by Joby Puthuparampil Johnson)