MUMBAI: Bankrupt IL&FS group has put on block its entire commercial real estate assets in the Gujarat International Finance Tec City (Gift City) for sale, which according to sources, is likely to fetch around Rs 480 crore.
In a public notice Monday, IL&FS said it has put its two towers-Gift One and Gift Two-having a developable area of around 6 lakh sqft on the block and has invited expressions of interest from investors.
These two commercial towers of 28-storeys each, are developed by special purpose vehicles-Sabarmati Capital One and Sabarmati Capital Two-respectively, which are subsidiaries of IL&FS Urban Infrastructure.
According to industry experts, the deal is expected to fetch the crippled company around Rs 480 crore and property consultant CBRE is assisting for the transaction. The parent IL&FS owes close to Rs 1 trillion to over 50 banks and financial institutions and have been defaulting on its debt obligations since last September. The company was sent to the bankruptcy tribunal last October after the government superseded its board.
Gift City, a 50:50 joint venture between the IL&FS and state-owned Gujarat Urban Development Company, has executed 99-year lease deed commencing from June 2013 for the land in favour of the two special purpose vehicles and had granted development permission for the built-up area of around 6 lakh sqft each to them.
Last November, the Gujarat government had also announced its plans to buy out the 50 percent stake in Gift City from IL&FS to ensure there were no delays in executing the ambitious project.
Gift City Company has invested Rs 2,000 crore in developing the necessary infrastructure for at the finance centre where over 150 financial and other companies have already set up operations, directly employing over 6,000 and another 1,500 indirectly. Besides the two international exchanges being operated by the BSE and NSE, 13 large banks are also operating from the IFSC.