Hindustan Construction Company (HCC) has finalized the sale of a 2,35,870 sq meter land parcel in Karnala village, Panvel, near Mumbai, for Rs 95 crore to Oak and Stone Construction. Stamp duty for the deal amounted to Rs 5.70 crore. The Board's resolution on November 9 paved the way for this strategic move. The transaction, facilitated through a 'deed of conveyance,' supports HCC's asset monetization and debt resolution plan. The sale aligns with a broader trend, as FY23 witnessed over 87 land deals covering 1,862 acres in India, emphasizing the ongoing significance of asset monetization in the real estate sector.
Hindustan Construction Company (HCC) has successfully executed a 'deed of conveyance' for the sale of a large land parcel measuring 2,35,870 sq meters in Karnala village, Panvel, Maharashtra. This sale was valued at Rs 95 crore and was bought by StoreAce Logistics' subsidiary, Oak and Stone Construction. The transaction attracted a stamp duty of Rs 5.70 crore.
The deal is part of HCC's asset monetization plan, and contributes to its broader debt resolution strategy. Simultaneously, the company is engaged in a significant share purchase agreement through its subsidiary Steiner AG, Switzerland, divesting its equity interest in Steiner Construction SA to Demathieu Bard for Rs 928 crore.
StoreAce Logistics, the acquiring entity, envisions developing a logistics park spanning around 2 million sq ft on the acquired land in Panvel. Shubham Baldi, Director of StoreAce Logistics, revealed plans for additional land acquisitions in Panvel and Uran to further expand their logistics assets.
ICICI Bank's issuance of a no-objection certificate on September 18, on behalf of HCC's lenders, marked a crucial step in facilitating this sale. The funds generated from this transaction, forming part of HCC's overall monetization target of Rs 1,549 crore, are earmarked for project completion and debt repayment.
HCC's financial report for the quarter ending September disclosed consolidated revenue of Rs 1,832.6 crore, reflecting a decrease from the previous year's Rs 2,257 crore. Similarly, the consolidated net profit for the quarter stood at Rs 6.4 crore, a notable decline from the Rs 310.3 crore reported in the corresponding period a year ago. The company clarified that the exclusion of subsidiary Steiner Construction SA's operations from consolidated figures adheres to accounting standards and is attributed to its anticipated sale in the upcoming quarter.
In the post-Covid real estate dynamics, FY23 witnessed over 87 land deals closing across India, covering a vast expanse of 1,862 acres, as reported by ANAROCK, a prominent real estate consultancy firm. Mumbai Metropolitan Region (MMR) led the tally with 25 deals spanning 267 acres, closely followed by NCR with 23 deals over approximately 274 acres.
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