Delhi-based real estate firm BPTP has missed the September deadline to pay the second instalment of Rs 230 crore to the Noida authority for the country's largest land deal worth Rs 5,006 crore. The company has sought a month's extension to pay the due amount with the applicable additional interest on it.
BPTP has been looking at diluting stake in the company through the private equity(PE) route to pay for the land deal. The company, however, has failed to strike a deal due to global liquidity crunch and resistance among PE players to invest given the rapidly deteriorating Indian real estate situation. An executive at BPTP said, "There is a provision in the agreement for extension of deadline for payment. We have sought a month's extension and will be able to make the payment in October."
BPTP had outbid realty giant DLF, Omaxe and Ansals to win the 95-acre deal Rs 5,006 crore in March this year. Under the deal, BPTP had to pay Rs 1,250 crore as the first instalment within a month after the auction. The remaining amount was to be paid in 16 six-monthly instalments alongwith an interest of 11% compounded annually on the due amount. The first of these six monthly instalment was due in September.
BPTP had earlier sought threemonths' extension for paying out the first tranche of Rs 1,250 crore and had paid a higher interest of 14% on the amount. This amount which was due on mid April was eventually paid in July. Over the last six months, the company has struck two deals with international investors to raise funds to pay for Noida land deal. It sold 40% stake in its four IT SEZs to raise $160 million and 3% stake in parent company to J P Morgan Chase for Rs 250 crore. ET
