Phoenix Mills hopes to make 700% gain on sale of Kurla property

Areport in the Hindustan Times today said thatPhoenix Mills is planning to sell over two lakh square feet, or 4.6 acres, of its commercial property at Kurla for about Rs 300 crore.

Given that the company had bought 25 acres in Kurla in 2006 for about Rs 235 crore, that would mean a whopping, seven-fold gain for the company on the 4.6 acres (assuming the sale happens around that price).

Phoenix Mills' plans reflect a larger trend in which real estate companies are selling some of their assets to reduce their huge debt load.

It's not just the big guys who are offloading their assets, mid-sized companies are also trying to sell assets they don't think they can use productively in the near future, reports Mint.

Included in the large companies that have taken this route are DLF, India's largest real estate company, which has raised Rs 3,480 crore by selling its non-core assets in the six months to September (it had total debt of Rs 22,519 crore at the end of September), the report noted.

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Another large real estate developer eyeing asset sales is Parsvanth Developers, which has put up its 1.5 acre plot for sale in Connaught Place, New Delhi, and plans to raise around Rs 700-800 crore to reduce debt. The company had debt of Rs 962 crore at the end of March 2011, according to Mint.