Orbit Looks to Sell Stakes in 4 Projects Co aims to raise up to . 500 crore; funds to be used to halve debt-equity ratio

    Mumbai-based listed real estate developer Orbit Corporation is in talks with local developers to sell stakes in four projects, including three redevelopment projects in central and south Mumbai, and a 17-acre slum rehabilitation project in Santacruz suburb, said two people familiar with the development. 

The company is aiming to raise . 450-500 crore by selling stakes in projects with an objective to halve debt-equity ratio to 0.4 times by the end of this financial year. The company's total debt stood at . 887 crore at the end of June. 
Besides the slum rehabilitation project in Santacruz suburb, the redevelopment projects that are being negotiated for stake sale are at Lalbaug, Worli and Tardeo in south and central Mumbai. 
Orbit declined comment for the story citing silent period ahead of its quarterly earnings to be detailed next week. "The talks have been initiated with two realty developers for Santacruz project. The company is contemplating now if the project can be exited entirely as one of the developers has shown interest to that effect," said one of the people quoted earlier. 
Orbit's Santacruz project involves rehabilitation of 2,200 slums spread over 17 acres near Khira Nagar on SV Road. The project, with total estimated saleable area of 8 lakh sq ft, has already received consent and slum rehabilitation authority's approval with some free sale component buildings already being constructed. 
Most of the funds the company is looking to raise are likely to come through transactions for Santacruz and Lalbaug projects, said the person quoted above. 
The redevelopment project at Lalbaug in central Mumbai involves 20 buildings, for which the company has already bought out the landlords. It has also received the tenants' consent for eight buildings so far. Thecompany is looking to offload its interest in some of these buildings on standalone basis. It is also ready to work towards a tie up with strategic investors. 
Apart from these two projects, the company has put two more redevelopment projects in Worli and Tardeo on the block. 
These projects are estimated to have total development potential of nearly 60,000 sq ft. Of these, the company is already in advanced talks with a local developer for Tardeo project that has 25,000 sq ft development potential. Shares of Orbit gained 4.7% to close at . 57.75 on the Bombay Stock Exchange on Tuesday. 
kailash.babar@timesgroup.com