HDFC Realty leaving projects at random: Know why?

When companies are relying on the merger and acquisitions to make their business versatile and attain large pool of customers, HDFC seems to have turned on the gear for exit. Recently, the HDFC Property Ventures Ltd. has decided to sell off its investment to a Bangalore-based technology export company. Adopting an exit route is not new for HDFC as it has already done four exits before this one within a period of few months.

The sale of the investment will earn HDFC and find of 4.90 billion Indian currencies. The technology park of North Bangalore, Manyata Business Park, has received a net 2.1 billion Indian currency. This news was received from a HDFC Property’s executive who refused to disclose name. The technology park which houses companies like IBM Corp. was previously a joint venture between Embassy Property Developments Ltd, which is a Bangalore based real estate firm, and HDFC Property. And now after this new development, HDFC will exit the project by the middle of April.

As per the news report of Mint HDFC has put up 6 office places for sale. They are taking this attempt to return the investor’s money; however, their intention of doing it is still not disclosed. Previously, HDFC Property has also retired from projects worth billions of rupees.

The financial analysts of HDFC Realty have hinted a little about this sequel of exit. As per their analysis, HDFC Realty’s desperate attempt of selling off and taking exit from live projects has been influenced by HDFC’s asset quality and returns of investment in terms of rents. The realty giant has been getting a good rental yield despite putting a hefty investment in real estate projects.

The investors are expecting to see share buybacks by HDFC Realty soon and are also expecting to observe secondary sales.

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