Parsvnath Developers Ltd, the New Delhi-based real estate developer, has postponed its retail forays due to the current economic slowdown. The company, according to a senior official, would further re-evaluate the market situation to continue the initial plan. Meanwhile, the company is close to finalize the SEZ stake sale to private equity investors.
Pradeep Jain, chairman, Parsvnath said, “Due to the present economic slowdown, the company has put a hold on retail diversification. But this is a temporary hold and our international partner has also put hold on its expansion plans in India. If the condition improves, we can review the situation again in another 3-6 months.” However, Jain did not divulge the name of the retail partner.
Jain further added, “At present, we are talking to number of private equity investors, and talks are on for dilution of SEZ stake. We expect the deal to happen in another 2-4 months.”
On retail front, Parsvnath was planning to have 5-10 front-end stores by this fiscal, with an international retail partner supporting the company for logistics. The company’s retail plans included, hypermarkets, food joints, and “very large” retail stores of about 2.5-3 lakh square feet, but it will not include the cash and carry format.
In June, when the company announced its plans to foray into retail space, it expected large roll-out number to add to its balance-sheet this fiscal.