Puravankara Projects, a Bengaluru-based property developer, has sold 100 per cent of its three subsidiary companies Purva Land, Purva Marine and Purva Hotels along with the land in Hyderabad to a pharmaceutical firm Hetero Group. The deal is finalised at a total amount of Rs 475 crore.
Reportedly, the three subsidiaries were likely to commence a real estate project construction in Raidurg in Hyderabad. Back in 2007, the plan was to develop a hotel project in this land and incorporate a subsidiary company. The company can now see the potential in exiting the land as the valuation has surged.
The real estate developer passed an enabling resolution to exit its earlier investment of Rs 403 crore at Raidurg Panamaktha Village which also contains selling all shares of its three subsidiaries.
“The company plans to use the money for reducing debt,” says a person familiar with this deal. “Puravankara is preparing at the balance sheet level to look for distress opportunities in the market and also take up half complete projects that need fund for completion.”
Source: ET Realty