Textiles’ major Alok Industries has started talks with major corporate groups and high net worth individuals (HNIs) to sell its property at Peninsula Business Park in central Mumbai, after a hiatus in talks with global real estate funds. Alok’s talks with the US-based Tishman Speyer, the largest global real estate fund, failed due to valuation mismatch and regulatory concerns. According to earlier reports, the funds of Morgan Stanley and Singapore Government-owned GIC were also engaged in talks with Alok to acquire the property.
Alok is looking for a deal in the range of Rs 900-1,000 crore. Tower B at Peninsula Business Park, Lower Parel, owned by Alok, aggregates around 650,000 sq ft. Alok had acquired the office premise which was developed by Peninsula Land Holdings at Dawn Mills. There have been various funds evaluating the premises. These apparently need clarifications on certain regulations governing purchase of properties under the FDI (foreign direct investment) route, which is expected to take time. However, Alok feels compelled to sell the property to clear mounting debt. As on September, total debt was Rs 9,933 crore.
