Bengaluru: Indiabulls Real Estate Ltd (IBREL) has entered into a definitive transaction with Bengaluru-based developer Ozone Group to sell its residential township project Indiabulls Greens in Chennai for Rs285 crore, said two people familiar with the transaction, who didn’t wish to be named.
This is in line with Mumbai-based firm Indiabulls’s strategy to exit Chennai, a non-core market for the company’s real estate business.
“...The company has entered into definitive transaction document(s) to sell its stake in its wholly owned subsidiaries, namely Selene Estate Limited and Airmid Infrastructure Limited (owning residential assets at Chennai) to a third party investor, for an aggregate consideration of Rs. 285 crore,” IBREL said in a notice to BSE on Monday morning.
It didn’t disclose the name of the investor.
The transaction is expected to be concluded by March-end.
IBREL has one residential township project—Indiabulls Greens—in Chennai. The project, which has around 2.07 million sq.ft of saleable area, will be developed in four phases, of which the first phase has been delivered.
An Ozone spokesperson couldn’t be reached for comment till the filing of this report.
Ozone has a 45-acre township project Metrozone in Chennai and is also developing a 150-acre mixed-use township project Urbana in Bengaluru.
Mint reported on 22 March that Indiabulls is planning to sell off its residential project in Chennai for around Rs250-300 crore. In another transaction, Indiabulls is also planning to monetise the One Indiabulls Park project in Chennai’s Ambattur area, which has 2 million sq.ft of leasable area. Read more
The company said last week that it is evaluating options for the sale of both residential and commercial assets in Chennai.
Last week, IBREL said it has executed definitive transaction documents with global private equity investor Blackstone Group LP to divest 50% stake in subsidiaries Indiabulls Properties Pvt. Ltd and Indiabulls Real Estate Co. Pvt. Ltd at an aggregate enterprise value of $1.46 billion or Rs9,500 crore. Read more