New Delhi: Realty firm Supertech is in talks to sell its office complex in Noida for around ₹1,000 crore as it aims to cut debt significantly and save interest cost, sources said.
The company has developed a 9 lakh sq ft office building in its 17.5-acre mixed-use project 'Supernova'.
According to sources, Supertech is in advance stage of discussions with some potential buyers to sell this office complex, and the deal could be finalised soon.
Earlier, the company had put on sale about 10 lakh sq ft retail space in the Supernova project.
Talks are on with interested parties to sell this retail complex, sources said, adding that sale of office complex is expected to conclude first.
Supertech also wants to divest its hotel properties at Rudrapur and Meerut comprising about 210 keys and has appointed some consultants to find buyers.
The company is looking to raise around ₹1,500 crore through the divestment of retail space and hotels, sources said.
The total funds raised through the sale of office, retail and hotel properties would be used for reducing debt and meet the construction cost of ongoing as well as future projects.
Supertech has a total debt of around ₹2,500 crore from banks and non-banking finance companies (NBFCs).
The company spokesperson declined to comment.
"We are looking to monetise our commercial space to raise funds for our ongoing projects and reduce debt," Supertech Chairman R K Arora had said in October.
Indian commercial real estate has been performing well in the last few years because of huge interest from domestic and global institutional investors in rent-yielding assets.
The government’s decision to introduce Real Estate Investment Trusts (REITs) in India has also boosted the commercial segment.
Supertech had in December 2017 raised ₹430 crore from Altico Capital to fund its ongoing housing project in Noida and repay debt. It had raised ₹350 crore from L&T Finance in September 2017 to complete its ‘Eco-Village 1’ housing project, comprising 7,500 units, in Noida Extension.
In the 17.5-acre premium project Supernova, Supertech is developing five towers at an investment of around ₹5,500 crore. The company has started delivery in two 44-storey residential towers comprising 575 units. In other towers, it is building studio apartments, a hotel and branded residences.
The entire project is expected to be completed in the next two-three years.
Supertech has delivered 40,000 units in the last 30 years and is currently working on 60,000 flats across 35 projects, mostly in Noida, Greater Noida and Gurugram.
The company also has projects in Ghaziabad, Meerut, Muradabad, Dehradun, Haridwar, Rudrapur and Bengaluru.
This story has been published from a wire agency feed without modifications to the text.