hcc: HCC sells 58 acres in Panvel near Mumbai to StoreAce Logistics’ arm for Rs 95 crore

Hindustan Construction Company (HCC) has sold a land parcel spread over 58 acres in Panvel near Mumbai to supply chain company StoreAce Logistics’ subsidiary, Oak & Stone Constructions, for Rs 95 crore.

Oak & Stone Constructions had emerged the highest bidder in an e-auction conducted by the listed company.

The plot was put on block by the company as part of its monetisation target under a resolution plan entered with its group of lenders. The land parcel was mortgaged to a total 21 lenders including Punjab National Bank, ICICI Bank, IDBI Bank, State Bank of India, Canara Bank, Exim Bank, Bank of Baroda and Life Insurance Corporation of India.

The registration of the deal, which attracted stamp duty worth Rs 5.70 crore, was concluded on Monday.

StoreAce Logistics is planning to build a logistics park on the land parcel acquired through its subsidiary. Currently, the company has over 1 million sq ft warehousing in Nhava Sheva near Jawaharlal Nehru port Trust (JNPT).

“We have acquired the land parcel to develop a logistics park spread over around 2 million sq ft and the plans are being prepared as of now. We are looking at picking up more land parcels in and around Panvel and Uran to develop more such assets,” Shubham Baldi, director, StoreAce Logistics, told ET.On September 18, ICICI Bank had issued a no-objection certificate (NOC) on behalf of lenders of HCC for this sale, showed documents accessed through CRE Matrix. All the lenders who had charge over this land parcel have secured internal approvals to release the mortgage on the plot and sell it through an auction.The proceeds of the sale are expected to be used by HCC for meeting the monetisation target under the resolution plan. Out of the monetisation target of Rs 1,549 crore, Rs 1,247 crore will be infused into projects towards their completion and balance Rs 302 crore will be used towards lenders debt repayment, showed the NOC that has been annexed to the sale agreement.

Earlier this week, the company announced that its subsidiary Steinier AG, Switzerland has entered into a share purchase agreement with Demathieu Bard for divestment of its entire equity interest in Steiner Construction SA, Switzerland, for Rs 928 crore.

ET’s email query to HCC remained unanswered until the time of going to press.

HCC reported consolidated revenue of Rs 1,832.6 crore for the quarter ended September as against Rs 2,257 crore a year ago. The consolidated net profit for the quarter stood at Rs 6.4 crore as against a net profit of Rs 310.3 crore a year ago.

In November, while announcing the September quarter performance, the company had stated that consolidated figures are not comparable due to the exclusion of the subsidiary Steiner Construction SA’s operations, which per the accounting standard is treated as discontinued given its expected sale in the coming quarter.