Real Estate

Essar sells commercial property in Mumbai to Brookfield for ₹2,400 cr

Our Bureau New Delhi | Updated on April 24, 2018 Published on April 24, 2018

The Essar group will use the entire sale proceeds to repay loans. It is reducing debt by monetising non-core assets.   -  DANISH SIDDIQUI

Debt-laden Essar group has sold Equinox Business Parks in Mumbai’s Bandra-Kurla Complex to Brookfield Asset Management for ₹2,400 crore in one of the biggest transactions in the commercial real estate sector.

"This demonstrates the value we have been able to create in our Equinox investment. I am happy that we have been able to conclude a marquee deal with a quality investor, Brookfield,” Anshuman Ruia, Essar, said in a press release today.

Located in Mumbai’s prime central business district and spread across nearly 10 acres, Equinox Business Park comprises four towers, with a leasable office space of about 1.25 million sq ft.

In 2006, Essar was a licensee in the business park. Later, it acquired the towers and ultimately the entire Park between 2008 and 2012. Some of the companies that occupy space in the Park are Tata Communications, Experian, Crompton Greaves and Lafarge.

Ankur Gupta, Brookfield’s Real Estate Head (India), said: “We will invest significant capital, introduce more F&B and modern amenities, and establish Equinox as a high-quality office destination.” The Essar group had announced in 2016 that it would sell the property to Bengaluru-based realty firm RMZ Corp, but the deal could not be concluded.

In a similar big ticket office space deal, Godrej Properties had sold 4.35 lakh sq ft area in Godrej BKC project to Abbott for ₹1,480 crore in September 2015.

Brookfield Asset Management is a global alternative asset manager with around US$285 billion in assets under management. The company has more than a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on April 24, 2018
This article is closed for comments.
Please Email the Editor