In its quarter-ended March investor presentation, Indiabulls Real Estate said it has decided to focus only on Mumbai and NCR markets.
Shares of Indiabulls Real Estate rose as much as 13.41% during Wednesday’s trading session before closing the day 10.23% higher at Rs 116.35, after the company said it has decided to divest Century, the parent company that houses Hanover Square property, London, for £200 million.
In its quarter-ended March investor presentation, Indiabulls Real Estate said it has decided to focus only on Mumbai and NCR markets. “In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish; so the promoter has undertaken to buy the parent company of London asset for £200 million,” it said.
The company had purchased the property for £161.5 million. CBRE, London has recently valued the property at £189 million, the firm said. After this transaction, the net debt of the company would be below Rs 3,000 crore, it pointed out. As on March 31, the net debt of the company stood at Rs 4,590 crore.“Since it is a related party transaction, promoter will not be participating in the voting on this item,” the firm indicated in the presentation.
Indiabulls Real Estate posted a 95% drop in its net profit at Rs 108.61 crore in the quarter-ended March compared to the same period last year. Total income decline 37% to Rs 2,040.61 crore. Earlier on Wednesday, a report indicated that Indiabulls is looking to exit its real estate business for which it has got in touch with its joint venture partner Blackstone as well as Godrej Properties. This comes at a time when Indiabulls Housing Finance and Lakshmi Vilas Bank have announced a merger. After the announcement of the merger, Inidabulls Real Estate chairman Sameer Gehlaut had said he was ready to exit the realty business.