Deal Street

April 25, 2018

Essar sells commercial plot in Mumbai to Brookfield for INR 2,400 crore

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Essar group has sold prime commercial property Equinox Business Parks at Bandra-Kurla Complex (BKC) in Mumbai to global investment firm Brookfield Asset Management for Rs 2,400 crore.

The Company is the owner and operator of an industrial park called ‘Equinox Business Park’ at Bandra Kurla Complex, Mumbai, which is 10-acre business park comprising of four towers, with a leasable office space of about 1.25 million square feet.

"We have been able to conclude a marquee deal with a quality investor, Brookfield, who has an enviable track record of highly strategic and well-considered acquisitions. This is among the largest transactions in India's commercial real estate sector, and demonstrates the value we have been able to create in our Equinox investment," said Anshuman Ruia, Essar.

DSK Legal advised and assisted Equinox Business Parks Private Limited, an Essar group entity. The transaction also involved subscription to certain securities of the company by the parties.

The DSK Legal team comprised of Partner Sajit Suvarna, Associate Partner Saloni Mody and Associate Twara Kamdar. Partner Sagar Kadam along with Associate Vishesh Karanwal advised on certain real estate aspects of the transaction.

The stake sale was a part of Essar group’s strategy of reducing its debt by monetizing its non-core assets and accordingly the proceeds from the divestment were utilised to repay certain lenders (both at an entity and group level). The most complex part of the transaction was to draw-up a structure which worked for the multiple lenders and at the same time was also able to achieve the commercial objective of the parties.

Commenting on the deal, Ankur Gupta, Brookfield's Real Estate Head (India) said, "We are excited to bring Brookfield's placemaking capabilities to Mumbai's main business district. We will invest significant capital, introduce more F&B and modern amenities, and establish Equinox as a high-quality office destination."

Brookfield was represented by Shardul Amarchand Mangaldas & Co. Also, PricewaterhouseCoopers acted as financial advisers for the transaction.

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