HDIL close to sell 2 acre plot in Mumbai suburb for over Rs 300 cr

MUMBAI: Realty developer Housing Development & Infrastructure is close to selling nearly two acres land parcel in Andheri suburb of Mumbai. The deal with another realty developer is estimated to be over Rs 300 crore including the development rights, said people familiar with the matter.

HDIL declined to comment for the story.

This plot is part of a large parcel on which HDIL is constructing a residential project Metropolis with saleable area of 650,000 sq ft. The company was also planning to construct around 1 million sq ft of commercial space as part of this mixed-use project. Out of the commercial projects, the company had already pre-leased around 10% of the space that was earmarked for retail development.

According to realty industry experts, the move to sell part of this land parcel is aimed reducing the company's debt burden. As on September end, the developer's net debt stood at Rs 3,944.78 crore with debt equity ratio of 0.4 times, the company had said in its quarterly earnings presentation.

On Tuesday, shares of HDIL closed at Rs 70.80 on the Bombay Stock Exchange, up 13.2% from previous close.