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Resort operator Country Club India Ltd plans to sell its non-core assets, and expand its residential real estate business even as the company is trying to pare its debt of over ₹350 crore.
Following a slowdown in the hospitality sector, Country Club, which operates 55 resorts across the country and a 100-room hotel in Dubai, recently informed stock exchanges that it would get rid of its non-core assets to reduce debt in the next couple of years.
Besides, the company will not incur any major capital expenditure for two years. The company has launched its first housing project in Bangalore under the brand Osadia Realty. Work on the 370-apartment project has already begun and the realisation could be over ₹ 200 crore, said Y Rajeev Reddy, Chairman and Managing Director of Country Club India.
Two more projects are planned in Bangalore and Hyderabad. It also has got approval for developing a 28-acre township at Shamshabad in Hyderabad.
The company closed the year 2013-14 with a turnover of ₹500 crore and expects to close the current financial year with ₹600 crore. Country Club borrowed over ₹300 crore a few years ago from various banks on a long-term basis to redeem $30-million worth of unsecured FCCB (foreign currency convertible bonds), and earmarked the rest for property renovation and setting up stand-alone fitness centres in India and West Asia. But since new investments are of a long gestation the company hopes to pay off debt through these real estate projects, Reddy said.
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