L&T Subsidiary Inks Pact to Transfer 15 Acres Land to Brookfield
Larsen &Toubro subsidiary L&T Metro Rail (Hyderabad) has entered into a pact with Brookfield Group to transfer around 15 acres of land parcel in the Hyderabad Information Technology and Engineering Consultancy City (HITEC City) to the global institutional investor. The land parcel will be transferred through a nearly 50-year lease for a total deal value of around Rs 1,020 crore. The MoU was inked recently and it also includes a 12-storey commercial tower that was constructed recently. The land is located opposite IKEA’s store in Hyderabad. The land parcel, including the ready commercial tower, will be added to Brookfield Group’s large portfolio in India, including 50 mn sq ft of office space across six cities. It also owns The Leela Hotels and Palaces. Overall, Brookfield Asset Management has over $22 bn of assets under management across real estate, infrastructure, renewables, and private equity in the country. Through a concession agreement with the then government of Andhra Pradesh in September 2010, L&T Metro Rail (Hyderabad) was appointed to implement the Project on a Design, Built, Finance Operate, and Transfer (DBFOT) basis. L&T has been looking to monetise more land parcels around the metro project to make it more financially viable. L&T achieved financial closure for the project in March 2011, within six months of signing the agreement. A consortium of 10 banks led by State Bank of India has sanctioned the entire debt requirement of the project. This is the largest fund tie-up in India for a non-power infrastructure Public-Private Partnership (PPP) project. L&T is looking to reduce the debt incurred on the Hyderabad metro project and become a zero-debt company. The project has a significant component of real estate-related revenue streams like offices and residential buildings.
Tags : Larsen &Toubro subsidiary L&T Metro Rail Hyderabad Brookfield Group Hyderabad Information Technology and Engineering Consultancy City Andhra Pradesh government