Brookfield signs deal to buy IL&FS headquarters by June, Real Estate News, ET Real Estate

Brookfile It has extended the share purchase agreement to buy IL&FS HQ till June in a deal worth ₹1,080 crore after the initial deadline expired, two people aware of the development said. A source aware of the move said, “Brookfield has extended the share purchase agreement by six months from December to June in view of the delay in completing the deal.” “Brookfield intends to close the deal but litigation is delaying it.”

A Brookfield spokesperson did not respond to a request for comment, while an IL&FS spokesperson declined to comment.

Project Holdings Seven ,DIFC), which is affiliated with Brookfield, had signed an agreement for 12,651.95 square meters of land in plot number C-22 in ‘G’ block of Bandra Kurla Complex. MumbaiWith IL&FS Financial Center in December 2021.

In January 2022, the resolution was put to vote by the Committee of Creditors and was approved by a vote of 73.57%. However, in September 2022, the mortgage loan principal HDFC Asked the court to stop IL&FS from selling the property.

Earlier this month, the National Company Law Appellate Tribunal (NCLAT) rejected HDFC’s request to stay the sale, saying the sale was in accordance with the revised resolution framework authorized by the appellate tribunal in March 2020 and stalled the approval of the proposal. Can’t be made.

As reported, HDFC is likely to file a petition in the Supreme Court of India against the deal. The case pertains to a loan of ₹400 crore by HDFC to IL&FS through a lease rental discounting transaction.

The loan was to be repaid from the cash flows generated by IL&FS, which assigned its cash flows to HDFC. But, the company’s new management decided to sell the property as part of a plan to reduce its debt.

The Adjudicating Authority approved the sale on September 23, 2022. HDFC challenged the decision alleging that it violated the principles of natural justice.

“Given the legal delay in completing the deal for Brookfield, coupled with the appreciation in the real estate sector over the past few quarters, there could be an opportunity for the lenders to receive revised offers for the property,” said the first source.