US-based Blackstone will buy the Indiabull’s stake in their joint ventures–Indiabulls Properties Private Limited and Indiabulls Real Estate Company Private Limited (both owning commercial assets at Lower Parel, Mumbai), Yashita Buildcon Ltd and Ashkit Properties Ltd (both owning office properties in Gurugram).
Indiabulls said the aim is to “embark on a clear and simple path to achieve zero net debt in the current financial year through strategic divestment of its stakes in certain commercial and leasing business assets”.
On August 30, CARE Ratings had revised the long-term rating of Indiabulls Real Estate to CARE A from CARE AA-. The revision in ratings factors in the sluggishness in the real estate residential market leading to slower progress of sale of residential units and collections as compared to envisaged levels in FY2018-19. This has resulted in delay in project execution and cancellation of bookings in some of the company’s real estate projects. Further the rating factors in the lack of stable lease rentals received in the past owing to the management’s plans to divest its stake in commercial and leasing business assets, it added.
At 11:44 am; the stock was trading 6 per cent lower at Rs 58.65 on the BSE, as compared to 0.25 per cent rise in the S&P BSE Sensex. The counter has seen huge trading volumes with a combined 4.4 million shares changed hands on the NSE and BSE so far.