Indiabulls Exits London Investment

Major Indian real estate developer Indiabulls Real Estate has said that it is selling its London property investment.

The company has announced that it is to sell a subsidiary which owns property at 22 Hanover Square, London, for £200m. The property was purchased for £155m in 2014.

The company has reported declining profits of late and has said that the sale is part of a strategy to ease debt and also concentrate on the Indian market. However, it also referred to Brexit, saying: “In light of continuing Brexit related issues and uncertainty around it, the London property market remains sluggish, so the promoter has undertaken to buy the parent company of [our] London asset for GBP 200 million.”

Even mentioning Brexit looks like an attempt to, from an Indian standpoint at least, put a positive spin on a negative corporate story. Although the company says that it is selling the property for £11m above its current valuation it is unlikely the deal will turn out to be such a good one in the long term – particularly not at a time when foreign investors are jumping into the UK market, not out of it.

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Source BTVI
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