Orbit Corporation may sell stakes in four projects in Mumbai

MUMBAI: Mumbai-based listed real estate developer Orbit Corporation is in talks with local developers to sell stakes in four projects - three redevelopment projects in central and south Mumbai, and a 17-acre slum rehabilitation project in Santacruz suburb - said two people familiar with the development.

The firm is aiming to raise 450-500 crore by selling stakes in projects with an objective to halve debt-equity ratio to 0.4 times by the end of this financial year. The company's total debt stood at 887 crore at the end of June.

Besides the slum rehabilitation project in Santacruz suburb, the redevelopment projects that are being negotiated for stake sale are at Lalbaug, Worli and Tardeo in south and central Mumbai.

Orbit declined comment for the story citing silent period ahead of its quarterly earnings to be detailed next week.

"The talks have been initiated with two realty developers for Santacruz project. The company is contemplating now if the project can be exited entirely as one of the developers has shown interest to that effect," said one of the people quoted earlier.

Orbit's Santacruz project involves rehabilitation of 2,200 slums spread over 17 acres near Khira Nagar on SV Road.

Most of the funds the company is looking to raise are likely to come through transactions for Santacruz and Lalbaug projects, said the person quoted above.