New Delhi, Dec 29 : Hemisphere Properties, the company demerged with the surplus land of VSNL (now Tata Communications Ltd), has announced that the value of its land parcels which can be monetised is to the tune of Rs 19,000 crore based on current circle rate prices.
At its annual general meeting held on Tuesday, the company announced that it has conducted a survey and the land parcels that can be monetised stands at Rs 19,000 crore.
There is a possibility of the company partnering Tata Housing and Tata Construction to develop these land parcels for mixed use real estate which would mean malls, shops apart from primarily residential development. The Centre owns 26.12 per cent shareholding while the Tatas own equivalent shareholding through Pantone Investments.
The Ministry of Corporate Affairs issued an order of demerger between Tata Communications Ltd and Hemisphere Properties India Ltd and under which 739.69 acres of land, located in Delhi, Pune, Chennai and Kolkata, was transferred into the company.
The company holds prime real estate land in Greater Kailash in New Delhi (69.46 acres), Padianallur, Chennai (53.04 acres), Dighi, Pune (524 acres) and Halishar, Kolkata (35.19 acres) and Chhatarpur, New Delhi (58 acres). The biggest land parcel by far is in Pune.
The market cap of the company is Rs 2,097 crore and the stock price closed at Rs 73.60, up by 3.85 per cent.
The company mentioned in the annual report: “A large portion of the Surplus Land is located in Pune and accordingly, our operations will be heavily dependent on the performance of, and the conditions affecting, the real estate markets in the Pune Metropolitan Region (PMR). Our largest parcel of surplus land, aggregating to 524 acres is currently located in the PMR. As a result, our business, financial condition and results of operations will be heavily dependent on the performance of, and the prevailing conditions affecting, the real estate markets in the PMR.”
“The net worth of the company was negative in past years, as the company did not have any business and operations and now the goal is to begin monetising these lands to its best extent,” as per the latest annual report.
“This year has been a landmark year in the history of the company as we were able to complete years long struggle to demerge the surplus land of VSNL (now Tata Communications Limited) into your company,” it said.
“During the past years, the company, in absence of any assets, were unable to generate revenue from operations but with the recent owned huge parcel of lands in the major cities of India, we would definitely be able to reach the skies in near future,” it added.
“We are identifying options of land use based on the demographic factors and how we can utilize these land parcels. The Company is working closely with Ministry of Housing & Urban Affairs and very soon will decide the future plans associated with the land,” the annual report noted.
The intent of incorporation of the company is to transfer the surplus land of erstwhile Videsh Sanchar Nigam Ltd into the company and develop these land under the objectives set out in the Memorandum of Association. After the years of struggle and due process the land has been finally hived off into the company, it said.
Disclaimer: This story is auto-generated from IANS service.