Alok Industries to sell prime Mumbai property

Textile major Alok Industries has shifted its focus from global

real estate funds to major corporate groups and high net worth individuals (HNIs) to sell its property at Peninsula Business Park in central Mumbai. Earlier, its talks with the US-based Tishman Speyer, the largest global real estate fund, failed due to valuation mismatch and regulatory concerns. According to reports, the funds of Morgan Stanley and Singapore Government-owned GIC were also considering acquiring the Alok property.

If this deal gets through, Alok may earn funds worth Rs 900 to Rs 1,000 crores. Tower B at Peninsula Business Park, Lower Parel in Mumbai is owned by Alok, which aggregates to around 650,000 sq ft. Alok had purchased this office premises developed by Peninsula Land Holdings at Dawn Mills. The move would help the company clear its mounting debt. As on September, the company’s total debt accounted to Rs 9,933 crores. The current slowdown in real estate space is expected to cause a delay in concluding the final deal. When Alok Industries acquired the space, property rates were high and now they want to sell it at the same valuation. This is creating a disconnect between the owner and prospective buyer since buyers are looking at lower valuations, in sync with current market prices.