Raymond recently said it had sold a 20-acre holding in Thane on the outskirts of Mumbai to Virtuous Retail South Asia (VRSA) for Rs 700 crore. The Singapore-based mall-development company confirmed the deal and said it would invest another Rs 1,700 crore to develop a shopping mall on the land parcel.
This is one of the largest deals this year in the Mumbai Metropolitan Region (MMR). VRSA is a joint venture of global private equity fund Xander and Dutch pension fund APG.
JK Investo Trade, an associate company of the textile major, executed the deal for the land parcel in Thane (West), which is adjacent to Raymond’s other realty projects. Enthused by the news of the deal the Gautam Singhania-led company’s stock went up over 10 per cent to close the day at Rs 601.85 per share.
“The objective has been to deleverage the balance sheet and reduce debt, which is around Rs 2,500 crore at the group level,” said Raymond Chief Financial Officer Sanjay Bahl.
Realty sector experts said the rate of Rs 35 crore per acre was a good one for Raymond.
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