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Coffee Day Enterprises seeks lender approval to sell Global Village Tech Park
In September 2019, Coffee Day Enterprises had announced the deal as a part of its move to reduce debts nearing ₹5,000 crore.
Coffee Day Enterprises is awaiting lender approval to finalise a deal to sell the Bengaluru-based Global Village Tech Park to realty firm Salarpuria Sattva and global investment firm Blackstone.
“We wish to inform that the Company and Tanglin Developments Ltd, the subsidiary of the Company, is in the process of obtaining required NOCs from the lenders for the completion of the deal,” Coffee Day Enterprises said in a regulatory filing.
The company revealed that report suggesting roadblocks from bankers was nothing but rumours. The deal is believed to be close to ₹2,700 crore.
A Bloomberg report had earlier said that the sale of the tech park had been stalled as one of the creditors had not approved of the deal.
The report had said that Yes Bank Ltd had not issued the no-objection certificate as it was seeking assurances on repayments of other loans taken by Coffee Day. All other creditors had approved the transaction, it added.
The tech park in question is spread over 120 acres in Bengaluru and has a total built-up area of 3.3 million sq ft. Global Village Tech Park was constructed and is owned by the Cafe Coffee Day under the brand name Tanglin.
In September 2019, Coffee Day Enterprises had announced the deal as a part of its move to reduce debts nearing ₹5,000 crore.
Apart from Global Tech Park, the Coffee Day Group is trying to cut debt of Sical Logistics.
Sical Logistics Ltd was founded in 1955 and is an integrated logistics solutions provider. It was acquired by Coffee Day group in 2011.
Coffee Day Enterprises has been trying to reduce debts since the death of its promoter V G Siddhartha in July this year.
Police said Siddhartha had jumped from a bridge on the Netravathi river in Karnataka on July 29. His body was found floating near the river mouth two days later.
Siddhartha served as its chairman and managing director of Café Coffee Day. He was also a part of the board of directors of Mindtree, GTV, Liqwid Krystal, Way2wealth Brokers, Coffee Day Natural Resources, and Way2wealth Securities.
