Businessman and chairman of Reliance Group Anil Ambani may either sell his headquarters in Santacruz or give it on long-term lease to pay debts, said three people familiar with the development.
Ambani's firm has been in talks with a group of global private equity firms including Blackstone and another US-based fund in this regard.
The 700,000 sq ft Reliance Centre is likely to fetch as much as Rs 1,500-2,000 crore if it is sold.
Ambani, during an interview to ET, had said that Reliance Capital has a debt of Rs 18,000 crore. “Plans are afoot to make the group debt free in the next one year,” he said. A Reliance Group spokesperson confirmed it was looking to monetise its real estate assets.
If the property is sold or leased out, Ambani will move back to his Ballard Estate office in south Mumbai, they said.
“Anil Ambani is looking for the outright sale of the property or could give it on a long-term lease — both options are on the table,” one of the persons was quoted as saying by ET.
The Reliance Group “is looking to monetise its real estate as it aims to generate cash to pay off debt obligations after rating firms cut the creditworthiness of various group companies,” the person added.
It may appoint property consultant JLL to advise on the deal, the report added.