Delhi-based realtor Anant Raj Ltd, which has been looking to exit its hospitality business for the last two years, hopes to sell some assets as part of the strategy to focus on its core property development business, as per a stock market disclosure.
Responding to a media report, Anant Raj said that its core strength lies in developing commercial and township projects and though the company entered into hospitality space around 10 years ago, in line with the slump in the sector, it did not make further investment in any new hospitality projects for the last five years.
The company said it has been focusing on its core area of realty sector i.e. development of IT, SEZ, retail, commercial & township projects and for the last two years it has been trying to exit from hospitality projects.
“Now, as there is a stable government at the centre, overall improvement in the investors' sentiment and also considering that FDI is allowed up to 100 per cent in hospitality sector, the company believes that exit from hospitality projects may be feasible now,” it said.
The firm said there is no specific deal relating to any of the hospitality properties in the offing.
Earlier, newspaper Mint said the firm is looking to exit the hospitality business to bring down its total debt of around Rs 1,300 crore.
The report added that the firm is selling its two-acre property in Delhi for around Rs 500 crore and will use the cash to bring down the debt as well as for further growth of the company and to buy two-three new projects.
Anant Raj scrip closed at Rs 78.30 per share, up 3.85 per cent on BSE in a strong Mumbai market on Tuesday.
In the hospitality space, early this year, India's largest real estate firm by market cap DLF had sold its luxury hospitality chain Amanresorts to its founder Adrian Zecha for $358 million (or about Rs. 2,200 crore).
(Edited by Joby Puthuparampil Johnson)