RCom begins asset monetisation, sells 150 flats for Rs 330 cr

The company has set target to cut its debt from Rs 39,894 crore to under Rs 10,000 crore

Reliance Communications (RCom) today said it has sold nearly 150 residential flats in Navi Mumbai for Rs 330 crore as part of its asset monetisation plans aimed at lowering debt.

"The disposal marks the commencement of RCom's monetisation programme for surplus real estate owned by the company. The sale consideration for the disposal of the flats at Navi Mumbai has been finalised at over Rs 330 crore," the company said in a statement.

The entire proceeds from the monetisation of real estate will be utilised by RCom for repayment of debt, as part of its overall deleveraging plans, the statement said.

RCom has set target to cut its debt from Rs 39,894 crore to under Rs 10,000 crore.

Anil Ambani led firm said that it has already received more than 50 per cent of the sale proceeds of nearly 150 residential flats situated at Sea Woods complex in Navi Mumbai, and the balance amount will be realised during the current financial year, upon completion of documentation, etc presently underway.

RCom said that it also expects to finalise and announce plans very shortly for monetisation of its real estate asset measuring nearly 4 acres, situated at a prime location in New Delhi (just off Connaught Place).

On December 4, the RCom said that it has signed a non-binding pact to sell its cellular towers to private equity firm Tillman Global Holdings LLC and TPG Asia Inc in an estimated Rs 30,000 crore deal to pare debt.

Shares of RCom closed at Rs 83.70 a piece, up by 0.60 per cent on the BSE today.
Reliance Communications further said that monetisation of
towers is a "major step" forward in its deleveraging and asset light strategy for future growth transactions, subject to stipulated approvals.
It may be recalled that in mid-October, RCom had announced the signing of a non-binding term sheet with Brookfield Infrastructure Group for sale of the nationwide tower assets and related infrastructure.

Yesterday, in fact, Fitch Ratings had downgraded credit rating of Reliance Communications saying that it feels that ongoing joint venture plan of the company with Aircel and proposal to sell stake in its mobile tower arm will be negative for creditors.