The IL&FS Group has put on sale its entire commercial real estate assets in Gujarat International Finance Tec-City (Gift City) which is likely to fetch around Rs 480 crores. This money would help IL&FS Group from the bankruptcy and property consultant CBRE is assisting for the transaction.
On Monday, in a public notice, the IL&FS group has said that they have put both its towers- Gift One and Gift Two- which has a developable area of around 6 lakh sqft on sale and has invited expressions of interest from the investors.
These two commercial buildings of the IL&FS group are of 28 storeys each and have been developed using special-purpose vehicles like- Sabarmati Capital one and Sabarmati Capital Two-respectively which are subsidiaries of IL&FS Urban Infrastructure.
Since last September, IL&FS is defaulting on its debt obligations. The company owes Rs 1 trillion to around 50 banks and financial institutions. The company was sent to the bankruptcy tribunal last October after the government superseded its board.
Gift City, a 50:50 joint venture between the IL&FS and state-owned Gujarat Urban Development Company, has executed 99-year lease deed commencing from June 2013 for the land in favour of the two special purpose vehicles and had granted development permission for the built-up area of around 6 lakh sqft each to them.
The Gujarat government has declared last November that it plans to buy about 50% stake in Green City from IL&FS to ensure that there are no further delays in executing the ambitious project.
Gift City Company has invested Rs 2,000 crore in developing the necessary infrastructure for at the finance centre where over 150 financial and other companies have already set up operations, directly employing over 6,000 and another 1,500 indirectly.