To raise Rs. 1,000 crores.
By The American Bazaar Staff
NEW DELHI: Indian real estate development firm Parsvnath Developers Ltd. has announced that it will raise Rs. 1,000 crores in total assets over the next year and a half, by selling off parcels of land in the western and southern regions of the country.
Parsvnath chairman Pradeep Jain made the announcement on Tuesday, in which he said that the company will be selling off large chunks of land in Mysore, Hyderabad, Chennai, Kochi, Goa, and Phalgat, among other cities and rural areas. Of those regions, the company has the most in Kochi, with some 85 acres, followed by 75 acres in Mysore and 35 acres in Chennai, reports the Press Trust of India.
The reason for the sudden offloading of such huge amounts of land is so that the company can service its debt, which is estimate at being about Rs. 1,300 crore, and bring it down to about Rs. 500 crore – which would bring it down by more than half. Additionally, Jain said that the company wants to focus on developing its properties in northern India – in particular, New Delhi, where Parsvnath has some 70 million square feet worth of property currently in development, according to Reuters.
Jain also announced that Parsvnath is already in conversation with several potential buyers for the properties in western and southern India, and expects all land in the concerned regions to be sold within the next 18 months. Worst case, says Jain, if the land doesn’t sell then the company will enter into joint development deals with other firms.
Despite its debt woes, Parsvnath is still valued at nearly $240 million. Now in its 30th year, the company is one of the leading land developers on the subcontinent, with most of its development projects happening in north India. It has 10 live projects in Uttar Pradesh and 9 in Haryana alone, along with four more in Punjab and three in Rajasthan and Maharashtra each.