Lenders look to bag Rs 8,000 crore from sale of RCom's prime property

Will hold auction to sell 56-acres of prime real estate in Navi Mumbai, expect higher valuation due to construction of new airport in the vicinity

Lenders to Reliance Communications (RCom) are planning to approach top Indian corporates and real estate developers, including Mukesh Ambani-led Reliance Industries (RIL), to sell its 56-hectare property in Navi Mumbai where the bankrupt telco’s headquarters are also situated. They expect to fetch Rs 8,000 crore by selling it, sources said. 

The lenders are in touch with potential buyers to sell the property, Dhirubhai Ambani Knowledge City (DAKC), and expect a higher valuation because of the construction of a new airport in the vicinity. 

“An investment banker will be appointed to sell the land. It would approach top companies and real estate developers to sell the building and the piece of land, which is ideal for data centres, new hotels, and residential development,” said a source close to the development. It would be sold via an auction, the source said.

An RIL executive said it has not received any proposal to acquire the property as yet.

Before RCom went bankrupt in 2019, Anil Ambani, former promoter of the company, touted the development potential of DAKC at Rs 25,000 crore. Reliance Realty, a wholly-owned subsidiary of RCom, had received the Maharashtra Industrial Development Corporation's (MIDC's) approval to develop DAKC into a fintech centre.

Real estate consultants say the land will not fetch a higher valuation as per banks expectations. 

"Even if we take the Mukand's land sale of 55 acres at  Rs 17 crores a acre then this land value comes to Rs 2,125 crores and  banks would try to value it around Rs 20 crores per acre or Rs 2,500 crores in total value," said a real estate consultant asking not to be quoted.

 Even as the bankruptcy proceedings of RCom are stalled due to litigation over the transfer of radio waves to the highest bidder, its lenders are planning to expedite the sale of DAKC -- currently owned by RCom's two subsidiaries. Part of RCom’s debt is housed in the two subsidiaries -- Reliance Realty and Campion Properties.

 The sale of DAKC would require the approval of RCom as it is the sole shareholder of these two subsidiaries, the company said in a statement to stock exchanges on Monday.

 RCom said the resolution professional of the company has intimated to the committee of creditors (CoC) about the sale of the property and the latter has not yet given any clearance to it. RCom was sent for debt resolution in 2019, after it defaulted on its debt worth Rs 45,000 crore. The lenders have not received any dues because of the litigation. Another subsidiary of the company, Reliance Infratel -- for which separate bankruptcy proceedings were initiated -- was taken over by Reliance Jio for Rs 3,720 crore.