Reliance Emerging Key Real Estate Player
With an asset and project value of over Rs 40,000 crore under its belt (according to estimates), Reliance Industries has quietly become a key real estate player with the potential to monetise this portfolio. According to research by J P Morgan analysts, a stake sale of Reliance’s real estate portfolio would help it raise anything between $1-5 billion and could be one of the triggers for the company’s shares to break out.
A study by JP Morgan’s analysts estimated that a sale of Reliance’s real estate stake could help them raise a sum in the range of $1 billion-$5 billion, and could possibly lead to a surge in share prices.
Its entry and exploits into the sector have largely been undertaken by three subsidiaries – Model Economic Township (MET), having an inventory worth up to Rs 7,100 crore; Indian Film Combine, having projects amounting to Rs 2,700 crore; and Reliance Corporate IT Park, whose assets add up to 31,000 crores.
These subsidiaries, with massive landholdings are also in talks to use them for industrial, commercial and residential purposes. Companies who have signed deeds with these subsidiaries include those into manufacturing and tech giants from countries such as Japan, Korea and France.
Equipment manufacturing companies seek to gain advantage from occupying the land around Gurugram, where MET is based, as several vehicle factories are in the same area. The Reliance Corporate IT Parks, which has the largest amount of assets under its belt, caters to companies using their real estate, networks and telecommunications infrastructure.