DB Realty Ltd has reportedly sold off its 50% stake in a south Mumbai property to the Adani Group. According to the company insiders the Adani Group has also bought the remaining 50% stake in the Carmichael Road property, one of these people said, asking not to be identified. Mint could not verify the identity of entities that owned the remaining shares.
The valuation of the stake sale was not known, but the sources maintain joint venture is valued at Rs.450-500 crore. The 4,500 sq. m property is in an area considered to be one of the most expensive nationwide. Properties on Carmichael Road are typically priced at Rs.65,000-75,000 per sq. ft. Both the companies refused to comment on the development.
DB Realty’s promoters Shahid Balwa and Vinod Goenka are in jail, pending investigation into their suspected role in alleged irregularities in the grant of 2G spectrum and licences to telecom companies.
DB Realty has the largest portfolio of projects in Mumbai’s residential market, with nearly 33.5 million sq. ft of saleable space, at least half of which is in the premium south-central part of the city.
The company sold 3.7 million sq. ft in fiscal 2011. It has brought down its debt of Rs.475 crore on 31 March to Rs.256 crore. The company reconstituted its board after Balwa and Goenka’s arrest, appointing Goenka’s father, K.M. Goenka, as chairman.
