Yes Bank: Reliance Infrastructure sells Santacruz HQ to YES Bank to repay debt
Last year in July, Yes Bank took over the possession of the Santacruz building, which till last year served as the company’s headquarter, and two other smaller properties owned by the company after it failed to repay dues of Rs 2,892 crore.
“Entire proceeds from sale of Reliance Centre, Santacruz is utilized only to repay the debt of YES Bank,” Reliance Infra said in a statement.
According to Reliance Infrastructure executives, Yes Bank plans to use this building as their corporate headquarters and will be moving in soon.
The cash-strapped and loss making Reliance Infrastructure has been selling assets with the aim to turn debt free in 2021. In the last three months, it has closed three such deals including the sale of the Santacruz property.
Reliance Infrastructure has completed the sale of its entire holding in a power transmission joint venture with the state-run Power Grid Corporation of India for an enterprise value of Rs 900 crore, the Anil Ambani-led company said on Saturday.
In January, Reliance Infrastructure completed the sale of its entire 74% holding in a power transmission joint venture with Power Grid Corporation of India, namely Parbati Koldam Transmission Company, for an enterprise value of Rs 900 crore. It also completed the sale of its Delhi-Agra road project to Cube Highways and Infrastructure III Pte for an enterprise value over Rs 3,600 crore.
Prior to this, Reliance Infrastructure also sold its Mumbai power business to Adani Transmission. Incidentally, the company got the land in Santacruz as a part of its acquisition of the Mumbai electricity distribution business from the state-run utility BSES in 2003. The company later developed the land to build a commercial property and moved its headquarters to it from its earlier headquarters in Ballard Estate. After Yes Bank took possession of the building, Reliance Infrastructure moved its headquarters back to the Ballard Estate office.
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