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