InvestorQ : Why has Reliance Infra sold its headquarters building to Yes Bank?
Neelam Naik made post

Why has Reliance Infra sold its headquarters building to Yes Bank?

Anu Biswas answered.
1 year ago

Reliance Infrastructure, one of the many beleaguered companies in the Anil Ambani Group, has announced that it had sold its headquarters in Mumbai’s Santacruz area to YES Bank for a sum of Rs.1200 crore. Yes Bank plans to move from its current One-Indiabulls location and make this the corporate head office. The HQ of Reliance Infra is spread across 695,000 SFT area on a plot having 15,514 SQM land. The deal is to use the proceeds from the sale of Reliance Centre only to service the debt owed to Yes Bank.

Yes Bank has Rs.4000 crore exposure to Reliance Infra and this will reduce their debt by almost half. The office enjoys prime location because of its proximity to Mumbai’s Western Express Highway. In addition, it is just a 15-minute drive to the old and new airports as well as a 20 minute drive to Central Mumbai. The location is also just a stone’s throw from bustling business nerve centre of the Bandra-Kurla Complex business district.

The deal appears to hit a lot of birds with just one stone. Reliance Infrastructure is able to monetize one more of its prime assets at a reasonably good price. At the same time, Yes Bank shifts its corporate headquarters to a more accessible location as compared to Lower Parel. Even its NPA situation looks better now.