Realty firm Parsvnath Developers is looking to sell 1.18 acre of commercial land near Connaught Place in New Delhi for about Rs. 700 crore in order to reduce debt.
The company had acquired the land at Kasturba Gandhi Marg in 2008 for about Rs. 200 crore and had announced plans to develop retail-cum-office building at the location.
Parsvnath Developers has invited bids for sale of this property and is expecting a sales realisation of Rs. 700 crore, market sources said, adding that property consultant Jones Lang LaSalle has been roped in for this purpose.
When contacted, Parsvnath Developers chairman Pradeep Jain told PTI: “Yes, we are monetising our assets to deleverage the company’s balance sheet”.
Jain, however, declined to share details.
Parsvnath Developers has a net debt of about Rs. 1,200 crore and plans to reduce it to about Rs. 500 crore through sale of this prime property, sources said, adding that the deal could be finalised by the end of next month.