Reliance Communications (RCOM) has initiated the process to monetise its land assets across India and is targeting to raise a total of Rs 50 billion from the sale.
The sale of land assets is part of the company?s overall strategy to pare debt, which stood at Rs 401.77 billion as of end March 2014. Earlier in end June 2014, the company had raised about Rs 61 billion through issue of preferential equity shares and warrants to investors and promoters respectively.
The company has identified ten land properties in Delhi, Mumbai, Hyderabad, Bengaluru and Chennai, for sale within next six months to one year. The properties on outright sale include the company’s 3.7 acre Delhi office near Connaught Place, valued at Rs 7 billion, a property in Kolkata’s Chowringhee Road (valued at over Rs 1.50 billion), Navi Mumbai’s 7 Towers, where it has over 388,000 square feet of space (valued at Rs 2 billion), 19 acres in Bengaluru, properties in Ambattur near Chennai, 226,000 square feet of space in Hyderabad’s Hi Tech City, properties in Tirupati and Gujarat’s Anjar, and 150 flats in Navi Mumbai’s posh Seawoods residential property (valued at Rs 3 billion). The total valuation of these properties – over 70 acres of land and 1.3 million square feet of space – based on presentations made to real estate companies, at Rs 2 billion. The total valuation of these properties spanning across 70 acres of land is about Rs 20 billion.
Meanwhile, RCOM is also in talks with real estate developers for setting up commercial and residential projects, as well as an IT park in Dhirubhai Ambani Knowledge Centre (DAKC) near Mumbai. In the first phase, the company intends to raise Rs 30 billion from development of projects over 4.5 million square feet.
