HDIL makes 800cr land sale to clear debt

Mumbai: Realty developer Housing Development and Infrastructure Ltd (HDIL) is learnt to have sold 10 million sq ft of land for approximately Rs 800 crore in Virar to repay a debt of Rs 3,300 crore. It owns about 70 million sq ft at Virar. 

    Approximately 5 million sq ft was snapped up by three developers for about Rs 450 crore. Ashok Mohanani-led Ekta Housing Pvt Ltd purchased 2million sq ft (built-up area 18 lakh sq ft) for approximately Rs 200 crore, Vinay Unique bought 1.5 million sq ft for nearly Rs 150 crore while Bhoomiacquired a million sq ft for approximately Rs 100 crore. The rest has been picked up by three to four other developers for Rs 350 crore. 
    HDIL managing director Sarang Wadhawan and vicepresident (finance) Hari Prakash Pandey refused to comment on the sale. 
    The developer is close to selling a two-acre land parcel at Andheri for an estimated Rs 300 crore, sources said. This plot of land is part of a large parcel on which HDIL is constructing a residential project, Metropolis. HDIL facing double whammy 
Mumbai: Apart from a sale of 10 million sq ft, realty developer HDIL is also planning the sale of another plot in Andheri with development rights is part of the deal. The plot has a saleable area of 650,000 sq ft. It was also planning to construct around one million sq ft of commercial space as part of the project, the sources said. 
    Real estate analysts say HDIL is facing a double whammy of delay in approvals and weak demand in the Mumbai property market, where it has maximum exposure, more so in the redevelopment space. In case of HDIL, there are concerns that slow recovery of payments from land/floor space index (FSI) sales may constrain cash flows. 
    The key concern is recovery of payments due towards the FSI that the company has already sold, HDIL officials said. Out of the three land deals that HDIL has concluded in the past one year, 40% of the proceeds have been received. These deals are — Popular Car Bazaar at Rs 800 crore, Goregaon land parcel at Rs 650 crore, and Eveready parcel at Rs 86 crore.