2024-09-06 17:38:12
New Delhi: Green energy solution provider Suzlon Energy’s Pune headquarters has been sold. The company has done a property sale and leaseback transaction for its headquarters One Earth. Suzlon has sold it to OE Business Park Private Limited (OEBPPL) for Rs 440 crore. It is a special purpose vehicle. The shares of this company are held by funds managed by 360 One Alternatives Asset Management. Suzlon is selling its non-core assets and the sale of the headquarters is also a part of the same plan. This is the first time in the country that a company has sold its headquarters. Due to this, the company’s shares rose sharply in early trade and it jumped 2.7 percent to Rs 76.49. After the sale, the company has leased back its headquarters for a period of up to five years with sub-leasing and licensing rights. This divestment deal is part of the company’s comprehensive development strategy. Suzlon Group CFO Himanshu Modi said that this sale and leaseback arrangement is not expected to have any impact on Suzlon’s operations. The company has the right to sub-lease or license part of the assets. He said that this move to sell non-core assets has been part of Suzlon’s long-term strategy for the last few years.
Retail investors of Suzlon Energy turned out to be very smart, they played a big game in the June quarter
Why did you sell the headquarters?
Modi said that we have the largest orderbook of about 4 GW and by unlocking capital from non-core assets, we can focus more on our core business. The company is now debt-free. We are committed to taking strategic decisions that are conducive to our growth and fulfill our commitment to create lasting value for our stakeholders. Under the terms of the agreement, Suzlon will continue to occupy the asset as a leaseholder. Suzlon has also entered into an agreement to purchase shares and securities of OEBPPL.
Sale and leaseback deals are strategic financial transactions. In this, the company sells its assets to a buyer and simultaneously leases it back from the new owner. The buying company is usually a real estate investor. This arrangement allows the company to unlock the capital tied up in real estate assets without disrupting its operations. Under the terms of the lease, the company retains possession of the asset and continues to use it.