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L&T Metro Rail (Hyderabad) Limited has secured the green light from both the state government and its members for the "envisioned sale" of its active Raidurg business operation. This significant move, conducted through a slump sale approach, is slated for Rafferty Developments Private Ltd., marking a noteworthy stride towards strategic evolution. The success of this venture is contingent upon the meticulous fulfilment of transaction protocols, requisite approvals, and finalization procedures. This pivotal verdict emerged from a consequential extraordinary general meeting convened on the premises.
Sources with insider knowledge have revealed that L&T Metro Rail is poised to lease out a sprawling 15 acres of prime land at Raidurg to Rafferty Developments, a dynamic partnership entity comprising Brookfield Corporation and K Raheja Corp. Ltd. This prospective agreement, spanning an extensive 50-year tenure, comes with a considerable consideration exceeding Rs 1,200 crore, spotlighting the substantial financial magnitude attached to this alliance. The broader motivation behind this transaction revolves around L&T Metro's strategic commitment to harness the potential of its leased land assets for optimized financial outcomes. This concerted endeavour is intricately woven into the larger mission of curtailing the existing debt load of approximately Rs 13,000 crore, heralding a prudent financial recalibration.
Delving into the specifics of this transformative decision, L&TMRHL shared in an official regulatory filing that, in the wake of securing commendation from the Government of Telangana and the unwavering support of their esteemed Company Members, they are on course to consummate the impending sale of their Raidurg business operation. The proposed approach hinges on a comprehensive slump sale, effectively transitioning the reins to Rafferty Developments Private Limited. This substantial land parcel encompasses a pre-existing 12-storeyed IT office tower, amplifying the tangible assets involved.
Notably, L&TMRHL had previously outlined an ambitious blueprint encompassing the erection of three distinct IT office towers, spread across a sprawling expanse of 4.6 lakh sq. ft within the encompassing nine acres. Additionally, the strategic allocation envisioned a thriving mall spanning the remaining six acres, forming a cohesive vision for comprehensive commercial vibrancy. This comprehensive design was initially presented as part of the environmental clearance process back in April 2021, reflecting the astute foresight of L&TMRHL's strategic planning.
Essentially, L&T Metro Rail's dynamic commitment to strategic evolution is highlighted by its proactive steps. By leveraging the latent potential of its leased assets, the company aims to streamline its financial position while simultaneously fostering a progressive landscape of commercial realignment.
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