GMR Group Divests Warehouse Facility at Hyderabad Airport for Rs 188 Cr

7 June 2023
2 mins read
GMR Group's strategic divestment to ILP Core Ventures valued at Rs 188.10 crore showcases their expertise in real estate development and value creation
GMR Group Divests Warehouse Facility at Hyderabad Airport for Rs 188 Cr

The GMR Group has announced the sale of an 8,18,000-square-foot warehousing building at Hyderabad’s Rajiv Gandhi International Airport.  

In a regulatory filing, the company reported, “The GMR Hyderabad International Airport (GHIAL), a step-down subsidiary of GMR Airports infrastructure signed the agreements and closed the transaction with ILP Core Ventures PTD Ltd at an enterprise value of Rs 188.10 crore.” 

This transaction is a testament to GMR Group’s capabilities in developing world-class institutional-grade real estate project assets and generating value through a successful exit, the company said in its statement. The resulting cashflows will help in deploying capital in expansion facilities and other growth opportunities at the Hyderabad Airport Land Development portfolio. The wide interest from multiple global investors also reaffirms Aerocities at large airports as a new-age real estate ecosystem. 

The said divestment of the warehouse facility was concluded by means of divestment of a 100% equity stake of GMR Hyderabad Airport Assets Limited (GHAAL), a subsidiary of GHIAL and a special purpose vehicle that owned this warehouse facility. As such, post-conclusion of the transactions, GHAAL would cease to be a subsidiary of GIL. 

Meanwhile, the company posted muted quarterly earnings for Q4FY23, as the net loss widened to Rs 637 crore as compared to the loss of Rs 129 crore in Q4FY22. EBITDA also dipped almost 50% to Rs 259 crore in March 2023 as against Rs 534 crore in March 2022. Interestingly, revenue grew by 47.58% YoY to Rs 1,895 crore from Rs 1,284 crore in the same quarter of the previous fiscal year. 

According to the company, at Delhi and Hyderabad airports, near-term traffic may face some headwinds from supply-side constraints including the bankruptcy of GoFirst airline and engine issues. However, traffic is expected to gain further momentum in the medium to long term.