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Coffee Day To Sell Its Bengaluru Tech Park To New York’s Blackstone

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Coffee Day Enterprises has signed a non-binding agreement with giant private equity firm Blackstone Group based in New York City for its technology park-Global Village Tech Park in Bengaluru. The deal is valued at Rs 2,600-3,000 crore, according to the company's exchange filing on Wednesday. Selling the 90-acre property will help the company reduce its debt-burden.

Coffee Day To Sell Its Bengaluru Tech Park To New York’s Blackstone
 

The transaction is subject to completion of Blackstone's due diligence, documentation and receipt of requisite regulatory approvals, which it expects in the next 30 to 45 days.

Further, it said that the company's board has provided it's in principal approval for disinvestment in its stepdown subsidiary, AlphaGrep Securities Pvt. Ltd in favour of Illuminati Software Pvt. Ltd. for approximately Rs 28 Crore.

"The above mentioned transactions will significantly help in deleveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers," it added.

As of 31 March, the Coffee Day Enterprises had collective debt obligations of at least Rs 7,653 crore, while the group's total assets were valued at Rs 11,259 crore.

Shares of Coffee Day have fallen by 65 percent since the death of founder VG Siddartha.

Read more about: coffee day enterprises ccd
Story first published: Wednesday, August 14, 2019, 16:30 [IST]
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