EBM News
EBM News

Entire real estate assets in GIFT for sale

NEW DELHI: Debt-ridden IL&FS is planning to put up its entire real estate assets in Gujarat International Finance Tec-City (GIFT) for sale, with sources saying that this is likely to net the company around Rs 1,200 crore. The company, they said, will decide on how to go about selling the assets and examine the bids they have received after the next board meeting.

“The monetisation of assets was on our agenda. We have got many proposals for these assets. We will discuss the future bidding after our next board meeting, which will happen during the last week of this month. Our target is to raise between Rs 1,000-1,200 crore from it,” said an IL&FS official. The Gujarat government has expressed interest in buying these assets, the source added. Currently, IL&FS owns about five lakh sq ft of office space in the project.

In November last year, the Gujarat government had also announced its plans to buy out a 50 per cent stake in GIFT City which is held by IL&FS in order to ensure there were no delays in executing the sprawling project. The value of the IL&FS stake in GIFT City is currently being evaluated. The Gujarat government already owns the other 50 per cent of the project.

When the IL&FS crisis hit the limelight last year, GIFT City’s chief executive Ajay Pandey left the firm over the non-payment of salaries. Last month, GIFT City appointed former Corporate Affairs Secretary Tapan Ray as its MD.

The IL&FS board also expects that they will be able to raise a good amount from the sale since the government has announced several tax incentives for companies setting up shop in GIFT City during the Budget. The government has extended provisions allowing a tax deduction of 100 per cent of profits for these companies to ten years along with other incentives in order to promote the International Financial Services Centre in GIFT City.