IL&FS Group puts GIFT City offices on block

Infrastructure Leasing & Financial Services Ltd (IL&FS) Group has put out its office spaces in Gujarat International Finance Tec-City (GIFT City) on the block.

Also, the company has signed binding term-sheet with lenders of three of its road projects.

On Monday, the beleaguered IL&FS Group issued an advertisement inviting expressions of interest to sell their commercial office spaces in GIFT One and GIFT Two buildings inside GIFT City, Ahmedabad.

GIFT City is a business district or an international financial services centre promoted by the Gujarat government through a joint venture with IL&FS Group.

As per a company statement, IL&FS Group owns a total of 4,76,634 sq feet, or 44,280.75 sq metre, in both the buildings.

The buildings known as GIFT One and GIFT Two are held by Sabarmati Capital One Ltd (SCOL ) and Sabarmati Capital Two Ltd (SCTL), which are wholly owned subsidiaries of IL&FS Township & Urban Assets Ltd, which is a wholly-owned subsidiary of IL&FS.

GIFT City Company has executed a 99-year lease deed commencing from June 7, 2013, for the land in the favour of SCOL and SCTL. This company was granted development permission for built-up area of approximately 6,00,000 square feet each to SCOL and SCTL under development norms for utilisation of the land. In each of these buildings, IL&FS, through its step down subsidiaries, SCOL and SCTL, own office and commercial spaces.

IL&FS said that the expression of interest must be submitted by August 26.

In another development, IL&FS has signed binding term-sheet with secured lenders of three entities as part of its resolution process. The entities for which the binding term-sheet has been signed are Moradabad Bareilly Expressway, Jharkhand Road Projects and West Gujarat Expressway.

"With this term-sheet, these three entities have now been moved them from Amber to Green, as per the NCLAT order July 12, 2019. These three entities would also now be eligible for getting reliefs already granted to 'existing green' entities, as per the order passed by the Hon'ble NCLAT on February 11, 2019," said an IL&FS spokesperson.

This move too is part of asset monetisation undertaken by the debt-ridden group.

The total debt across these three road entities is around Rs 5,071 crore. Of this Rs 5,071 crore, Rs 3,242 crore is from secured lenders and the balance Rs 1,829 from unsecured lenders.

"Revised proposal involves certain concessions and modification of terms of financial debt, availed by these entities from lenders, including release of cash flow from existing accounts to service financial and operational creditors; reduction in debt service coverage ratio requirement; utilisation of surplus cash; preference to secured lenders over unsecured lenders in case of shortfall; and revision in the interest rate charged to the entity," the company said.

With overall debt of Rs 1,567 crore, the major secured lenders in Moradabad Bareilly Expressway include India Infra Debt, L&T Infrastructure Finance Company, L&T Finance, L&T Infra Debt Fund, Bank of Baroda and Bank of India.

For the Jharkhand Road Project that has five road projects under the fold on Build-Operate-Transfer basis, the major secured lenders include India Infra Debt Ltd, L&T Infra Debt Fund Ltd, Aditya Birla Sun Life Mutual Fund, Aditya Birla Health Insurance and Capital Asset Fund. This entity an aggregate debt of about Rs 1,545 crore.

The West Gujarat Expressway is for 68 km Jetpur and Rajkot bypass, including Rajkot bypass on NH8B in Gujarat, and its major secured lenders include L&T Infrastructure Finance Co Ltd and L&T Infra Debt Fund Ltd with an exposure of around Rs 129 crore.