HDIL to garner Rs 750 cr from Mumbai land deals

Firm is selling 5 mn sq ft each in Palghar and Vasai-Virar areas, is expected to get Rs 350-400 cr for each

Mumbai-based property developer HDIL is in the final leg of talks to sell two land parcels outside Mumbai that could garner around Rs 750 crore, said a source in the know.

HDIL is selling five million sq ft each in the Palghar and Vasai-Virar areas and is expected to generate Rs 350-400 crore for each, he said. "Both plan to use it for housing projects," he said.

According to a television report, the company is in talks with Shapoorji Pallonji for the Virar parcel. Negotiations for Palghar are on with Veena Developers. HDIL executives did not respond to calls on the subject.

The proceeds are expected to be used for lowering its debt, the source said, from Rs 2,700 crore to around Rs 1,900 crore after the deals.

HDIL has earlier sold many land parcels with the same aim. Last year, it sold 850,000 sq ft of development rights in Kurla, Mumbai, to a company of the Wadhawan Group for Rs 649 crore. HDIL and Wadhawan are headed by cousins Sarang Wadhawan and Kapil Wadhawan, respectively, who divided their business in 2009.

According to reports, HDIL also plans to sell 200 acres in Baroda and Hyderabad. Last year, it sold its multiplex business for Rs 105 crore to the Carnival Group.

The HDIL stock ended at Rs 96.70 on Monday, three per cent higher than Friday's close.