Thomas Cook Sets To Monetize Its Realty Assets in India

Thomas Cook, the world renowned travel and tour provider and agency, has informed that it will monetize its realty assets in India. The decision is taken mainly to cut short its debts.

Thomas Cook has over 32 realty properties across India. The group has recently appointed Jones Lang LaSalle for monetizing some of these properties. The group hopes to earn up to Rs.300 Cr., through monetizing its properties.

Thomas Cook owns over 60,000 sq. ft. of commercial space in Mumbai. The group also owns 43,000 sq. ft. in New Delhi. The South Mumbai property alone is estimated at around Rs.200 to Rs.250 Cr.

Thomas Cook plans to monetize its realty assets to reduce debts.

Thomas Cook plans to monetize its realty assets to reduce debts.

While informing the media their plan to monetize the realty assets, company spokesperson said that the amount will be used for funding the working capital requirements of the group.

The group aims to cover up or cut short their debt with the amount raised from monetization of the properties. The monetization will be done through Institutional Placement Program (IPP).

The company is reported to have a tough time in the last one to one and half years. The company has to find some emergent fund for erasing their debt. This is the reason behind their decision to monetize the realty assets. The company aims to raise around Rs.300 Cr by the way of monetization.

The company has appointed real estate consultant firm Jones Lang LaSalle India to handle the monetization. The real estate consultants will find takers for leasing the property.

Thomas Cook to monetize its realty assets.

Thomas Cook to monetize its realty assets.

Commenting on the monetization plan of Thomas Cook, some property experts say that the investors must be cautious to invest with the firm. They say that the investment over Rs.65 per share is risky and they ask the investors to fix the deal only if the price apiece is below Rs.65.

Monetization of the realty assets is always considered as one of the best and easiest ways to lower the debts. The market watchers are looking forward how this will help the group reduce its debt.

DLF Sells Shares to Meet SEBI’s Guidelines

The largest real estate developer DLF will raise Rs.2000 Cr through selling its shares. The realty major plans to sell out over 81 million shares.

The largest real estate developer DLF will sell around 81 million shares to raise a fund worth Rs.2000 Cr. The shares will be sold under the institutional placement program. Continue reading

DLF to raise Rs.2100 Cr via institutional placement program

India’s largest real estate firm DLF plans to raise Rs.2,100 Cr through institutional placement program (IPP)- a system in the market in which the stakes are sold to qualified institutional buyers.
DLF to raise Rs.2100 Cr through IPP.

DLF to raise Rs.2100 Cr through IPP.

DLF, India’s largest real estate firm, by April 2013, will raise over Rs.2100 Cr via selling its shares to qualified institutional buyers. The real estate major will sell around 8.1 Cr shares of the firm to raise the fund.

Though the move is in line with the guidelines specifying 25% public shareholding, the main aim of the move is to help the firm reduce the debt.  However the Rs.2100 Cr fund is one of the biggest ever- raised through IPP, in India.

An official said that they have already started discussions with the bankers. He added that the firm is likely to appoint around three or four merchant bankers soon for the purpose. Though the pricing is not yet done, the official said that the shares will be priced either at the current market price or there may be a 5% discount in the existing prices. However the prices will be as per the prescribed guidelines of IPP, he added. Continue reading