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| Brigade to sell hospital land for Rs 120 cr |
| Raghuvir Badrinath / Chennai/ Bangalore Aug 18, 2010, 00:40 IST |
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Property is part of 40-acre enclave
Brigade Group, a publicly-held real estate group based in Bangalore, is understood to be close to selling its 165-bed hospital property to a group of high networth individuals for around Rs 120 crore.
The hospital land, which has been leased to Columbia Asia for 30-years, is understood to have a built-up area of around 220,000 square feet. According to information available with private equity funds, Columbia Asia has the first right of refusal for this land and the hospital chain is understood to have agreed to the sale of the land to a group of HNIs.
The property is housed as part of a 40-acre enclave which Brigade Group is building in West of Bangalore in the Rajajinagar-Malleshwaram area. The enclave — Brigade Gateway is an integrated concept, with different zones for residential, retail, recreational, educational and commercial purposes. A company spokesperson confirmed that they are in discussions with various groups for selling this land.
Senior officials in the PE industry said Brigade Group has had discussions with various PE funds including Milestone Private Equity, a PE fund owned by Religare, to sell this property but couldn’t come to a conclusion on valuation with them.
In addition to the hospital, this enclave will house a Sheraton 250-keys five star hotel, one million square feet of commercial office property build over 30 storeys, 1,200 residential apartments, a lifestyle mall including a 11-screen multiplex besides a school.
The sale of this parcel of land comes at a time when Brigade Group is starting to embark on a Rs 500 crore fund raising plan within the end of 2010, most probably through a QIP issue.
The realtor, which has plans to develop around eight to 10 million sq ft of area this fiscal, will utilise the fund flow to increase its footprint in the retail and hospitality segment.
Brigade Group has a debt book of Rs 750 crore with a leverage of 0.63 times by the end of March, 2010. It posted a net profit of Rs 47.32 crore, a drop of 45 per cent in FY10 over the corresponding period last year. The net sales of the company stood at Rs 354.85 crore, a two per cent drop during this period over the same period last year.
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