To raise funds to pay off debts, Reliance Group is looking to lease out its headquarters based in prime suburbs of Mumbai.
By monetizing the Reliance Center Office located in Santacruz East, Mumbai, Reliance Infrastructure can raise funds to cut debts.
- The group of global private equity firms comprising Blackstone and a US-based fund is holding talks with Anil Ambani.
- This 700,000 sq ft property is located on Mumbai’s Western Express Highway, if sold could fetch up to Rs 1,500-2,000 crore.
- The group has appointed property consultancy firm JLL for legal advice.
- Meanwhile, Ambani is also considering moving back to his Ballard Estate office in South Mumbai which is currently vacant.
- With debts of Rs. 15,000 crore ($2.17 billion), Anil Ambani has stated that he would sell off all his road assets to make the company debt-free by next year.
Insights of the leasing property
The company headquarters, located along a busy highway in the premium commercial area of western Mumbai, is spread over 0.7 million square feet and accommodates more than 3,000 employees.
The property is under control of the flagship company of the group, Reliance Infrastructure Ltd. Also, known as R-Infra, builds and runs bridges, roads, metro rail, and power plants, and operates the company’s fledgling defense business.
It is one of the most indebted companies under their umbrella and has sold off assets in the past two years.
From wealth to debt; quite a journey for Reliance
Anil Ambani’s who was the 6th richest man in the world with a wealth of $42 billion in 2008 is now juggling with heavy financial debt companies. Also, his companies have come under scrutiny after global audit firm PwC resigned from Reliance capital.
Now the company has to take strenuous steps to tackle this financial problem and get back in the game.
