Suzlon Energy sells corporate HQ in Rs 440 crore sale-leaseback deal

Company says move to help focus on core operations

Suzlon Energy sold its corporate headquarters, 'One Earth,' in a Rs 440 crore sale-and-leaseback transaction with OE Business Park Private Limited, a special purpose vehicle managed by 360 ONE Alternates Asset Management, according to a company statement.

The deal, formalised on September 4, involves leasing back the office space for up to five years, allowing Suzlon to continue operations while monetising a non-core asset.

“This was something which has been on the anvil for quite some time in the company. Finally, we decided to enter into this transaction to fund the core business of our company,” said Himanshu Mody, chief financial officer, Suzlon.

The sale of the property in Pune is part of Suzlon’s broader strategy to focus on core manufacturing activities and strengthen its financial position. Suzlon retains the right to repurchase the asset through a call option, while the new owners have a put option to sell the property back to Suzlon under agreed terms.

This move underscores Suzlon's intent to streamline operations and enhance liquidity amid growing competition in the renewable energy sector, as India ramps up its renewable energy capacity to meet ambitious climate goals.

The renewable energy company had acquired a 76 per cent stake in Renom Energy Services for Rs 400 crore to strengthen its operation and maintenance (O&M) services in the wind energy sector last month. The company does not see any potential sell-offs in the near future, stated Mody.

The company has an order book of 3.8 gigawatts (GW) as of the June 2024-ended quarter (Q1 FY25), according to its annual report.

“Now that we are debt-free, we are committed to taking strategic decisions that are conducive to our growth and serve our commitment to create sustainable value for our stakeholders,” Mody added.

When asked about future acquisition plans, Mody stated that Suzlon will actively and opportunistically pursue both organic and inorganic growth opportunities.