Top developers seek to cut debt by offloading assets in fire sale

Analysts say several have raised funds by selling rental-yielding assets, some second rung cash-strapped builders are asking their banks and financial creditors to take over half-completed projects

Indian real estate companies are experiencing unprecedented financial challenges, with some top developers selling their rental income business or offloading other assets in a fire sale to meet financial commitments.

The latest to jump on the bandwagon is Bengaluru’s Prestige Group, which is in talks to sell its rental income business to US-based financial behemoth, Blackstone. Real estate analysts said several property developers have raised funds through selling rental yielding assets to meet fund requirements.

A few second-rung cash-strapped builders, too, are asking banks and financial creditors to take over their unfinished projects.

Analysts said developers had taken on a significant amount of