Indiabulls Real Estate’s net debt has increased by 67 per cent to Rs 5,083 crore at the end of the second quarter of the current fiscal mainly due to acquisition of prime property in Central London.
Mumbai-based developer entered the London market with acquisition of 22, Hanover Square in Mayfair, Central London, a 87,444 sq ft commercial property, for Rs 1,630 crore.
According to an analyst presentation, Indiabulls Real Estate’s net debt increased to Rs 5,083 crore as on September 30, 2014 from Rs 3,051 crore at the end of June quarter.
“Change in debt profile, primarily on account of the London acquisition (22 Hanover Square) for a total cash outflow of Rs 1,810 crore (including cash bank guarantee of Rs 180 crore),” the company said.
“Completed the acquisition of 22 Hanover Square, London for Rs 1,630 crore, excluding additional cash bank guarantee of Rs 180 crore submitted for financing,” it added.
The company had announced the acquisition on June 20. The property was purchased from Scottish Widows Investment Partnership (now part of Aberdeen Asset Management).
In the presentation, the company said it intends to redevelop and construct residential/commercial premise after expiry of current lease in 2017 subject to receipt of planning permission/approvals.
Last week, Indiabulls Real Estate reported 54 per cent decline in its consolidated net profit to Rs 37.34 crore for the quarter ended September 30, from Rs 81.21 crore in the year-ago period.
However, its total income from operations rose to Rs 744.79 crore during July-September quarter of this fiscal from Rs 450.62 crore in the year-ago period.