Bangalore: The proposed sale of 247 Park, a business location in suburban Mumbai, at an estimated value of 1,000 crore, has fallen through because of differences between its owners HCC Real Estate Ltd and IL&FS Milestone Realty Advisors Pvt. Ltd, according to people familiar with the development.

The deal that was being negotiated for several months entailed jointly selling the asset to global private equity firm Blackstone Group Lp.

“Due to differences between the partners, we have decided not to sell 247 Park jointly. HCC has found a potential buyer for its 26% stake and negotiations are going on," said Rajgopal Nogja, group president, Hindustan Construction Co. Ltd. HCC Real Estate is a unit of HCC.

Nogja said that although they tried to iron out the differences over the past couple of months, they continued to disagree on the structure of the deal. He didn’t give more details.

In 2010, a fund of IL&FS Milestone Realty Advisors acquired a 74% stake in the first phase of 247 Park, a 1.8 million sq. ft commercial property in suburban Vikhroli, while HCC Real Estate picked up the remaining 26%. The property was valued at 775 crore. IL&FS Milestone is a joint venture between Milestone Capital Advisors Ltd and IL&FS Investment Managers Ltd.

Milestone Capital Advisors and Blackstone Group declined to comment.

Infrastructure company HCC has undertaken the process of selling its real estate assets to pare debt. In June, its debt was around 4,818 crore.

Nogja said there is an urgency to sell 247 Park as well, and the deal with a different buyer should be done soon.

Lavasa Corp. Ltd, part of the HCC group of companies, also filed a draft prospectus in July to raise 750 crore in an initial share sale.

The sale of 247 Park is quite important to Milestone Capital Advisors, which has been focusing on exits for a while now, and as it also prepares to go the fund-raising route now.

Milestone has recently concluded a large office lease deal of 100,000 sq. ft in 247 Park with engineering firm Crompton Greaves Ltd, with the latter signing up for the space, said a person directly familiar with the development who didn’t want to be named.

Crompton Greaves declined to comment on the matter.

“The 247 Park transaction is in a unique situation where the fund is ready to do the transaction and put in money but the sellers can’t agree with each other on the terms and conditions of the deal," said one of the people familiar with the development.

Even if stake in 247 Park is sold separately, the total valuation of the asset is unlikely to change significantly, according to Ambar Maheshwari, managing director, corporate finance at property advisory Jones Lang LaSalle India.

In August, Mint reported Blackstone holding talks with IDFC Alternatives Ltd and Paranjape Schemes (Construction) Ltd to buy two phases in the BlueRidge special economic zone (SEZ) in Pune’s Hinjewadi area for around 1,000 crore.

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