Indiabulls Real Estate rises on $258 million London property sale

Indiabulls Real Estate shares rose as much as 11 per cent to Rs 117.2 in Wednesday's session after the company said it is to divest Century Ltd, the firm that houses Hanover Square property, London, to its promoter for 200 million pounds ($258.7 million).

Divestiture is in the light of sluggish London property market due to Brexit uncertainty, the company said.

It added that it has decided to focus only on Mumbai & Delhi's National Capital Region (NCR) markets.


As per the company, its net debt post-transaction will be below Rs 3,000 crore.

An ET report suggested that the Indiabulls Group is believed to have sounded out joint venture partner Blackstone and other leading players such as Godrej Properties to offload its stake in Indiabulls Real Estate (IBREL).

Distancing the group from realty is expected to improve the chances of obtaining regulatory approval for the proposed merger of Indiabulls Housing Finance with Lakshmi Vilas Bank (LVB), the report added.

The company reported a decline in profit and revenue in its March quarter results.

As of Tuesday's close, shares of the company have risen more than 20 per cent this year.

The shares of the company closed at Rs 116.35 up 10.23 per cent on BSE.

(With inputs from Reuters)