After getting permission from Supreme Court to sell of their domestic properties, Sahara Group on Thursday sold a big land parcel for Rs1,211 crore to Gurgaon based developer M3M India.
M3M Director Pankaj Bansal said that “the deal subject to the Supreme Court’s approval, was clinched two months ago as per the prevailing market price after M3M India was approached by Sahara group.”
Announcing the Gurgaon deal, probably the biggest land transaction so far in 2014, M3M India said the 185 acres of land it bought would be used for ‘mixed-use development’ and has sales revenue potential of Rs 12,000 crore over the next 6-8 years.
Bansal also asserted that it was not a ‘distress sale’ by Sahara and the deal has been inked on the basis of market price.He further said that “the entire amount will be paid in installments over a period of six months, while post-dated cheques have been given to Sahara group for purchase of this land at Chauma village in Gurgaon.
The source of funds is stated to be from internal accruals, strategic partners, and corporate investors including PE funds. Besides this Chauma land, the court has allowed Sahara to sell properties in Jodhpur, Pune and Vasai.
“It is too premature to estimate but it will be about one-third of the estimated sales revenue.” Bansal replied when The Pioneer asked about the total investment.
Out of the list of nine domestic properties submitted earlier to the court, Sahara has already sold its Ahmedabad property for Rs411.8 crore, which has gone into Sebi account.On funding of this project, he said the company would fund the project cost largely from internal accruals, but said it is also exploring the possibility of partnering with international developers, financial institutions and private equity firms.
Roy, who was sent to jail on March 4 this year in a case involving alleged non-refund of over Rs20,000 crore with interest to depositors, was asked by the court to pay Rs10,000 crore to get bail, of which Rs5,000 crore should be paid in cash and rest of the amount in bank guarantee.
While Sahara group claims to have directly refunded more than 93 per cent of the total amount to investors, it earlier raised Rs3,117 crore and deposited the same with Sebi, followed by another amount of Rs411.82 crore raised through sale of an Ahmedabad property.Delhi-NCR has witnessed many big-ticket land deals during the last eight years. last year, Gaursons had bought 300 acres on Yamuna Expressway in Greater Noida from Jaypee Group for more than Rs1,500 crore.
Wave Group’s 151 acres deal in Noida for about Rs6,500 crore in 2011 is the biggest land deal in the region.India’s largest realty firm DlF was also involved in two high-value land transactions. It had bagged a 350-acre plot for Rs1,750 crore in Gurgaon in 2009 and another 38 acres in the heart of Delhi for Rs1,675 crore in 2007.
Unitech had won 340 acres in Noida through auction for Rs1,582 crore in 2006.BPTP had bagged 95 acres of land in Noida for Rs5,006 crore through an auction in 2008, but the deal fell through as the company was unable to make full payment.Shares of Sahara Housingfina Corporation surged nearly 9 per cent after land deal Sahara Housingfina’s stock soared 8.69 per cent to settle at Rs50.05 on the BSE. During the day, it jumped 10.2 per cent to Rs50.75.
Shares of another listed group firm Sahara One Media & Entertainment, however, fell by 0.90 per cent to Rs94.05 at close of trade.