The funds will be utilised to reduce debt
IL&FS Milestone Fund has bought 74% stake in Hindustan Construction Co Ltd's (HCC) '247 Park' project for Rs575crore. The deal was signed on Wednesday. HCC has already received Rs121crore as token amount when signing the deal.
The property is valued at Rs775crore. "The equity valuation of this property is Rs400crore and the company will get Rs295crore from the sale of a 74% stake in the project. The funds will be used to reduce the company's debt which currently stands at Rs380crore," said Praveen Sood, group chief financial officer, HCC.
"We have bought 74% stake in HCC's 247 Park," confirmed Ashish Joshi, managing partner-real estate, Milestone Capital Advisors Pvt Ltd.
The corporate park is built on a 1.8-million sq ft plot in Vikhroli (central Mumbai). It includes three towers for housing service and retail businesses. It also has a business centre, ATMs, banks, a gymnasium, food courts and high-end restaurants.
HCC has already leased 85% of the space in 247 Park to various corporates. The project is under HCC Real Estate Ltd. (HREL) which is a 100% subsidiary of HCC.
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