Coffee Day Enterprises has announced that it has signed an agreement to sell Global Village Techpark to Blackstone Group and Sallapuria Sattva Group for Rs 2,700 crore in an all-cash deal.
The techpark is owned by the realty arm of the group Tanglin Developers Limited. It is a software tech park located in Rajarajeshwari Nagar off Mysore Road in Bengaluru.
Proceeds of the sale will be utilized by CDEL is repaying the debts on its books. As part of the deal, Blackstone Group will own 80% and Sallapuria Sattva Group will get the ownership of the remaining 20%.
The property has to be first separated from Tanglin Developers and made an independent entity before being handed over to the new owners.
“The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark Private Limited,” the company said in a regulatory filing.
As per reports, the proceeds of the sale will be credited to CDEL in two tranches of Rs 2,000 crore and Rs 700 crore. The announcement has come after the stock markets had closed for the day yesterday. The shares of CDEL were traded at ₹72.75 last.
As reported earlier, CDEL has debts to the extent of Rs 4,970 crore. The company’s reconstituted board had appointed IDFC Securities to advise it on how the huge debt burden could be handled. While GV Techpark had been identified and put on the block, IDFC Securities may be talking to some of the creditors for restructuring the debts to ensure the ongoing businesses don’t suffer. Those details are yet to emerge.
Sical Logistics is another group company that is being considered for sale or to bring in a strategic investor but has not been included in the mandate given to IDFC Securities.