Coffee Day sells tech park for Rs 2,700 cr to Blackstone to reduce debt

Coffee Day Enterprises on Tuesday announced sale of its Global Village Tech Park in Bengaluru to global investment firm Blackstone and realty firm Salarpuria Sattva at an enterprising value of Rs 2,700 crore.

The deal would help Coffee Day Enterprises Ltd (CDEL) pare its debt of nearly Rs 5,000 crore.

"The Company has executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks Pvt Ltd, a wholly-owned subsidiary of Tanglin Development Ltd ("TDL")," CDEL said in a regulatory filing.

"The transaction is at an enterprise value of Rs 2,700 crore subject to certain closing adjustments," it added.

The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Pvt Ltd.

"The Board has approved and the Company has executed the definitive agreements with entities belonging to Blackstone Group," it added.

CDEL said that the company has sold the tech park to focus on its core business and reduce the debt of Coffee Day Group.

The company expects to close the deal before October 31, 2019, by when the first tranche of the agreed deal value would be infused by Blackstone and realty firm Salarpuria Sattva.

CDEL has been trying to divest its assets to pare debt after the death of its promoter V G Siddhartha.

Siddhartha's body was found in the Netravati river in Dakshina Kannada district of Karnataka on July 31, a day after he went missing.

Besides Global Tech Park, the Coffee Day Group, is also looking to reduce debt of Sical Logistics, which runs port terminals and container freight stations.

Sical Logistics had last week said it has an external debt of Rs 1,488 crore, secured by the personal guarantees of late Coffee Day Group promoter V.G Siddhartha.

Coffee Day Enterprises shares on Tuesday ended 2.09 per cent down at Rs 72.75 apiece at BSE.