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HDIL to sell land parcels in Mumbai, Hyderabad to partly repay debt

LiveMint logoLiveMint 25-05-2014 PTI

Mumbai:Housing Development and Infrastructure Ltd (HDIL) plans to raise up to `1,800 crore this fiscal by selling stakes in some of its assets to partly repay its debt of around `600-700 crore in FY15.

The realty firm wants to sell off its 100-acre land parcel in Hyderabad and some of its commercial projects in Mumbai this fiscal.

“We want to monetise our assets where we have around 40-45% stake in joint venture projects. Our focus for the fiscal will be reducing our debt by selling assets,” HDIL vice-president (Finance & Investor Relations) Hari Prakash Pandey told PTI. He said the company plans to put its 100-acre land parcel at Kukatpally in Hyderabad on block, as this market has witnessed a revival in the last one month. According to sources, the current rates prevailing in Hyderabad is around Rs 4-6 crore per acre. The company managed to reduce its consolidated debt from `4,004 crore in FY13 to `3,511 crore in FY14.

On standalone basis, its debt came down by 22% on year-on-year basis to `2,441 crore. This fiscal HDIL intends to reduce its debt by `600- 700 crore.

Pandey said there are 3-4 commercial properties in Mumbai, where HDIL has a significant stake, and which it plans to dispose this year and focus only on residential projects in the Mumbai Metropolitan Region. Sale of these properties could fetch `1,000-1200 crore.

The company last fiscal sold its 45% stake in HDIL Leisure for `290 crore. It also sold a land parcel in Delhi. The real estate developer had planned to put on block its 70 acre land in Kochi for mobilising funds, but has now postponed that decision in view of current market condition. “However, since the market condition is not conducive, we have decided to postpone our decision to sell this land. We are also open for joint development, but so far we have decided to go slow on this,” Pandey added. He said the company had invested around `300 crore for purchasing properties in Kochi and Hyderabad.

HDIL posted a net profit of `113.52 crore in the March quarter against a loss of `279.95 crore a year ago. Total revenue rose 66.7% to `259.27 crore from `155.53 crore in the same quarter of FY13.

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