Home >companies >Indiabulls Real Estate plans luxury hotel, residences in London

Bengaluru: Indiabulls Real Estate Ltd (IBREL) plans to build a luxury hotel, serviced residences and retail-cum-restaurant space at the Hanover Square, London property that the developer bought last year.

The company has submitted a ‘planning application’ to Westminster City Council for the project comprising 41 apartments over 80,000 sq ft, 51 hotel rooms and 4,500 sq ft retail of and restaurant space overlooking Hanover Square, said an IBREL quarterly results presentation on Monday. The residential apartments will be serviced and managed by the luxury hotel, it said.

The Mumbai-based realty firm stepped into the London real estate market in June, 2014, when it bought an upmarket building in the city’s Mayfair area next to Hyde Park for 1,550 crore from Scottish Widows Investment Partnership, now part of global investment management group Aberdeen Asset Management Plc. The acquisition cost was estimated at 1.65 lakh per sq. ft.

IBREL’s net profit more than doubled to 90.6 crore in the June quarter from a year ago. Its revenues grew by almost 21% to 738.2 crore during the same period.

In June, the company said that co-founder and chairman Sameer Gehlaut will invest 538 crore in Indiabulls Real Estate Ltd through a preferential allotment of equity shares and warrants, raising his stake in the firm to 37% from 27%, a year after the three founders of the group separated their business.

Its net debt stands at 5,461 crore, marginally down from 5,480 crore in the March quarter. The company has said in the presentation that it plans to reduce debt by about 600 crore in the current financial year.

Shares of Indiabulls Real Estate Ltd lost 1.83% to close at 61.80 on Monday on BSE, while the benchmark Sensex gained 0.26% to 28,187.06 points.

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