Reliance Infra sells its Mumbai headquarters to Yes Bank for Rs1,200 cr in debt redumption
05 April 2021
The Anil Ambani-led Reliance Infrastructure has sold Reliance Centre, the premises housing the group’s headquarters, to Yes Bank for Rs1,200 crore as part of a debt repayment process.
Reliance Infrastructure Limited (RInfra) and Yes Bank Limited (Yes Bank) on Thursday announced the sale transaction of Reliance Centre, Santacruz, Mumbai to Yes Bank. The transaction value is Rs 1,200 crore, Reliance said in a stock exchange filing.
“Entire proceeds from the sale of Reliance Centre, Santacruz, is utilized only to repay the debt of Yes Bank”, as per the stock exchange filing.
Yes Bank had, in July last year, taken symbolic possession of the sprawling complex situated off the Western Express Highway and overlooking the Mumbai airport. The action was taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act to recover dues of Rs2,892 crore from Anil Ambani's Reliance Infrastructure.
Reliance Group had shifted to the new headquarters in 2018. After its debt crisis, the group has shrunk its operations. Besides Reliance Infra other group companies including Reliance Capital and its subsidiaries were headquartered there. Most of the offices were consolidated in the north wing and part of the property was listed for lease. The lockdown due to the pandemic resulted in further consolidation of office space as staff were asked to work from home.
Reliance Infra's exposure of Yes bank has been reduced from Rs4,000 crore to Rs2,000 crore. The company said it is committed to be a debt-free company in 2021.
As per the company, Reliance Infra has reduced exposure by 50 percent in the last 90 days. It has closed three major transactions in the last 90 days namely sale of road asset - Delhi Agra toll road, transmission asset - Parbat Koldfam Transmission Company Limited and sale of Reliance Centre, Santacruz.
Yes bank said it is planning to use the building as its corporate headquarters.
Yes Bank currently operates out of the Indiabulls Finance Centre in Lower Parel where it leased the top six floors. The private lender, which is undergoing reconstruction, by investors led by SBI, has been cutting costs.