Shapoorji Pallonji to raise $375 mn via luxurious realty properties
Real Estate

Shapoorji Pallonji to raise $375 mn via luxurious realty properties

Shapoorji Pallonji Group is in discussions to raise $375 million via the sale of luxurious premium realty properties in Dubai as the group deleverages.

The conglomerate is observed enhancing its cash flows after it sold Eureka Forbes and is in the process of marketing Sterling and Wilson, an EPC company that develops solar electric power plants.

The conglomerate is discussing with international investors asking for a reasonable valuation of the residential-cum-commercial property. Some global investors have likely shown interest as discussions are going on. Imperial Avenue is one such luxurious premium property. Shapoorji Pallonji Group plans to raise between $225 million and $375 million via its sale.

The funds raised will be a part of working capital and growth demands. The realty market is on acceleration globally, and the SP group will try to get advantages from this increase. The SP group has had a presence in the Dubai realty market for the past four to five years.

The Shapoorji group of firms had been handling a stretched balance sheet in 2020 after the outbreak of Covid-19, but recent asset monetisation efforts and overall economic recovery have assisted them to get back on track by majorly decreasing the debt burden.

Sterling and Wilson are said to be in sale discussions with bulge-bracket private equity funds, involving Canadian funds like Brookfield and CPPIB, and Indian conglomerates like Adani and Reliance Industries, expecting to reap the advantages of heightened interest in renewable energy in the nation.

Shapoorji Pallonji and Company Private Ltd. (SPCPL) had applied for a one-time restructuring (OTR) program under Reserve Bank of India’s resolution framework for Covid-19 related stress in 2020. Consequently, the OTR plan was successfully executed on March 31, 2021. The moratorium term ended on September 30.

In the first half of this FY, the promoters invested Rs 4,040 crore in the group firms, which was then utilised to repay the inter-corporate deposits (ICDs) extended by SPCPL to these entities, as per the ICRA Ratings. Consequently, SPCPL has repaid Rs 4,040 crore of OTR debt.

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Shapoorji Pallonji Group is in discussions to raise $375 million via the sale of luxurious premium realty properties in Dubai as the group deleverages. The conglomerate is observed enhancing its cash flows after it sold Eureka Forbes and is in the process of marketing Sterling and Wilson, an EPC company that develops solar electric power plants. The conglomerate is discussing with international investors asking for a reasonable valuation of the residential-cum-commercial property. Some global investors have likely shown interest as discussions are going on. Imperial Avenue is one such luxurious premium property. Shapoorji Pallonji Group plans to raise between $225 million and $375 million via its sale. The funds raised will be a part of working capital and growth demands. The realty market is on acceleration globally, and the SP group will try to get advantages from this increase. The SP group has had a presence in the Dubai realty market for the past four to five years. The Shapoorji group of firms had been handling a stretched balance sheet in 2020 after the outbreak of Covid-19, but recent asset monetisation efforts and overall economic recovery have assisted them to get back on track by majorly decreasing the debt burden. Sterling and Wilson are said to be in sale discussions with bulge-bracket private equity funds, involving Canadian funds like Brookfield and CPPIB, and Indian conglomerates like Adani and Reliance Industries, expecting to reap the advantages of heightened interest in renewable energy in the nation. Shapoorji Pallonji and Company Private Ltd. (SPCPL) had applied for a one-time restructuring (OTR) program under Reserve Bank of India’s resolution framework for Covid-19 related stress in 2020. Consequently, the OTR plan was successfully executed on March 31, 2021. The moratorium term ended on September 30. In the first half of this FY, the promoters invested Rs 4,040 crore in the group firms, which was then utilised to repay the inter-corporate deposits (ICDs) extended by SPCPL to these entities, as per the ICRA Ratings. Consequently, SPCPL has repaid Rs 4,040 crore of OTR debt. Image Source

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