RCom to pare more debt through realty sale - Daily News & Analysis

The rebound in Reliance Communications (RCom) continues. The beleaguered telco said it will hold a board meeting on Sunday to consider proposals to unlock value from the real estate properties, including by subsidiaries. At present, RCom has land assets at the Dhirubhai Ambani Knowledge Centre (DAKC) in Navi Mumbai, as well as some property in Delhi and Hyderabad. As per sources, two banks are already in the process of drawing up the details. Industry watchers view this as yet another step by RCom to pare its huge debt burden of over Rs 32,000 crore. Last December, RCom entered into a long-term strategic joint venture with China's Wanda Group, a leading global real estate developer, to lease out 135 acres at DAKC  with the potential of increasing it later to a built-up area of 10 million square feet. In addition, Wanda will invest in 80 acres in the new business district of Hyderabad owned by RCom, also with a potential interest of developing 10 million square feet in a phased manner. An industry source speaking on condition of anonymity said that this time round, RCom may be looking at selling some of its land, and Reliance Industries may be one of the contenders. Another source also said this development may be part of a 'bigger announcement' by RCom. Last week, RCom paid $1 billion out of its $7 billion debt on ECB loans from a clutch of international banks. RCom is also said to be selling its Flag undersea cable assets (Globalcom), and it's rumoured to be planning to sell 80% stake in its DTH business to Sun Direct. A long-term co-operation deal signed between RCom and Reliance Jio, the 4G broadband business of Mukesh Ambani-led Reliance Industries, for tower assets and other entities, is also expected to hugely aid RCom in reducing its debt. So far, RCom has signed a Rs 1,200 crore intercity fibre deal and a  Rs 12,000 crore deal for tower assets with Reliance Jio. Two more deals are expected to follow — for intracity fibre and for sub-sea cable assets as well, sources said. via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNGN-VJGX_lDMwJk4QaudSn5V62eyg&url=http://www.dnaindia.com/money/1857666/report-rcom-to-pare-more-debt-through-realty-sale

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