"Entities controlled by the Blackstone Group Inc have signed definitive documents for their participation in the merger," the presentation said.
Indiabulls Real Estate Ltd (IBREL) is expecting a net surplus of nearly Rs 11,400 crore from its completed and ongoing real estate projects.
In an investor presentation, the company informed that its new sales bookings stood at Rs 990 crore in the third quarter of this fiscal and Rs 1,359 crore during April-December period.
The gross collection stood at Rs 1,003 crore during October-December period and Rs 1,288 crore in the first nine months of the current 2020-21 financial year.
“Total net surplus from completed inventory, sold receivables and ongoing projects is Rs 11,394 crore,” the presentation said.
Net surplus is equivalent to pending collections from area sold plus value of unsold inventories minus pending construction cost.
Giving the break up, the IBREL said it expects a net surplus of Rs 2,462 crore from completed projects.
“Balance projects that are currently under execution to generate additional net surplus of Rs 7,560 crore. Net surplus from office rental portfolio is Rs 1,372 crore,” the company said.
Sharing update on the merger of its projects with Bengaluru-based realty firm Embassy group, the IBREL said it is expecting to get regulatory approvals anytime.
In August last year, Embassy Group signed an agreement to merge its various housing and commercial projects with the IBREL and take control of the merged entity. Embassy Group has around 14 per cent stake in the IBREL and the same will increase to 45 per cent after the merger of assets of these two companies.
IBREL as well as Embassy group firms NAM Estates (NAM) and Embassy One Commercial Property Developments (NAM Opco) had entered into definitive merger documentation to amalgamate ongoing, completed & planned residential and commercial projects of these two subsidiaries.
“The proposed scheme of amalgamation of NAM Estates and Embassy One Commercial Property Developments into the company was filed with SEBI/Stock Exchanges and Competition Commission of India for their approval. As on date, all administrative points are clarified and the approvals are expected anytime.
“Entities controlled by the Blackstone Group Inc have signed definitive documents for their participation in the merger,” the presentation said.
Post-merger, the combined entity will become one of India’s leading real estate development platforms, with 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.
Under the terms of the agreement, the IBREL’s shares are being valued at Rs 92.5 per share.
Embassy group, led by Jitu Virwani, is a major player in Indian commercial real estate. The group, alongwith Blackstone, launched India’s first Real Estate Investment Trust (REIT) in 2019 to raise Rs 4,750 crore through public issue. It also owns WeWork India.
Recently, the IBREL reported a 64 per cent rise in its consolidated net profit to Rs 80.69 crore in the third quarter of this fiscal year as against Rs 49.27 crore in the year-ago period.
Total income was Rs 756.81 crore during the third quarter of this fiscal year as against Rs 1,317.70 crore in the corresponding period of the previous year.