As part of its asset sale plans to service debt, crisis-hit IL&FS Group has put on the block its two towers in Gandhinagar’s GIFT City, which according to sources is likely to fetch around Rs 480 crore.
In a public notice on Monday, Infrastructure Leasing and Financial Services Ltd. said it has put its two towers—GIFT One and GIFT Two—with a developable area of around 6 lakh square feet on the block and has invited expressions of interest from investors.
These two commercial towers of 28-storeys each were developed by special purpose vehicles Sabarmati Capital One and Sabarmati Capital Two, subsidiaries of IL&FS Urban Infrastructure.
According to industry experts, the asset sale is expected to fetch IL&FS around Rs 480 crore. Property consultant CBRE is assisting the transaction.
IL&FS is saddled with Rs 1 lakh crore in debt to over 50 banks and financial institutions has been defaulting on its debt obligations since last September. The company was sent to the bankruptcy tribunal last October after the government superseded its board.
GIFT City, a 50:50 joint venture of IL&FS and state-owned Gujarat Urban Development Company, has executed a 99-year lease deed commencing June 2013 for the land in favour of the two special purpose vehicles. It had granted development permission for the built-up area of around 6 lakh square feet each to them.
In November 2018, the Gujarat government announced its plans to buy out IL&FS’s 50 percent stake in GIFT City to ensure there were no delays in executing the ambitious project.
GIFT City has invested Rs 2,000 crore in developing necessary infrastructure at the finance centre, where over 150 financial and other companies have already set up operations, directly employing over 6,000 people and 1,500 people indirectly.
Besides two international exchanges being operated by the Bombay Stock Exchange and National Stock Exchange, 13 large banks are also operating from GIFT City.
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