Mahanagar Telephone Nigam Limited (MTNL) has planned to monetize its prime real estate assets to raise Rs.5000 Cr.
The state- run telecom provider MTNL has approached a real estate consultant with their plan to monetize real estate assets. MTNL hopes to raise around Rs.5000 Cr through divesting their real estate assets.
MTNL plans to monetize the real estate assets in various ways including leasing or renting besides the sale of properties. They have informed the real estate consultant to raise the fund through other ways than merely selling.
Their monetization strategy also includes development of land parcels, lease and selling. They plan to mix up selling and other monetization methods like leasing or renting.
The bid was taken up by DTZ, a real estate consultant firm which has been operational in India for nearly a decade. Other real estate consultants like Jones Lang LaSalle, Cushman & Wakefield and CBRE had also placed their bids.
Majority of the low- demand raising properties of MTNL are expected to be monetized by the end of 2013. However, a senior officer, with close acquaintance with MTNL Authority, informed that further information can be given only after a week.
The state- run telecom provider has around 100 land parcels in the NCR and Mumbai. This list includes a prime property worth Rs.2000 Cr. The 20 – acres of land parcel is located in the West Delhi. However, DTZ officials declined to comment on the issue.
Last year too, MTNL had invited bids when the firm was hit by financial crises. Facing a severe loss in the industry, the debt of the state- run telecom provider rose to Rs.1,093 Cr. In the third quarter of 2012 MTNL faced a downturn of 26%.