Supertech to sell three hotels, lease Supernova retail space to reduce debt
Real estate company Supertech plans to sell three of its hotels in north India and give on lease 1 million square feet of retail space in Supernova — its luxury project in Noida’s Sector 94 — to raise Rs 1,700 crore. The company has debts of around Rs 2,500 crore and says will use the cash to complete its pending projects and reduce debt.
“We are heavily invested in residential properties and completing them and handing them over to buyers is our priority at the moment. We will liquidate some of our existing hotels for an estimated Rs 500 crore and lease out a million square feet retail space at Supernova to raise another Rs 1,200 crore towards debt settlement,” Supertech chairman RK Arora told TOI on Monday. “The three hotels which we are in the process of selling to streamline our finances are Rudrapur-based Radisson Blu and Haridwar-based Hyphen Grand (both in Uttarakhand) and Country Inn & Suites in Meerut (UP),” Arora added.
While the 124-room Radisson Blu Rudrapur is a five-star hotel, Hyphen Grand is a business hotel with 93 rooms. The 85-room Country Inn & Suites is a four-star hotel.
On Supernova, a 17.5-acre mixed use project where Supertech is developing five towers for an investment of Rs 5,500 crore, Arora said, “There is high demand for office and retail space among retail institutional investors because of good rental results. Retail segment has got a boost with real estate investment trusts.”
A real estate investment trust is basically a company that owns, and in most cases operates, income-producing real estate. Supertech has already started delivery of homes in two 44-storey towers in Supernova project. It has built 575 units in these two towers. An office tower with a million square feet of leasable area would be completed by the end of this year, the company said.
Additionally, the project includes an 80-storey tower, Spira, comprising 600 studio apartments and 250 flats and another tower with a 250-room hotel and 80 luxury residences. The project is due for completion by 2021.
Supertech is currently working on 60,000 flats across 35 projects, mostly in Noida, Greater Noida and Gurgaon. The company also has projects in Ghaziabad, Meerut, Moradabad, Dehradun, Haridwar, Rudrapur and Bengaluru.