RCOM fast-tracks real estate monetisation plans to cut debt

Reliance Communications (RCOM) is fast-tracking its planned monetisation of real estate assets in Mumbai and Delhi as part of its efforts to trim its debt, as the operator faces mounting pressure from creditors, the Economic Times reports, citing two people familiar with the development. The provider is looking to raise nearly INR110 billion (USD1.7 billion) through the monetisation of two properties: the Dhirubhai Ambani Knowledge Complex (DAKC) near Mumbai (valued at around INR100 billion) and the office of its corporate affairs wing in Delhi (estimated to be worth around INR8 billion). Plans to monetise the two properties have been in the pipeline for two years, but the pressing need to cut its debt burden of INR450 billion has led the firm to speed up the process. As previously reported by TeleGeography’s CommsUpdate, earlier this month RCOM was granted a ‘standstill’ on loan repayments until the end of December 2017 to complete the sale of its infrastructure arm and its merger with Aircel. The two transactions are expected to reduce the company’s debt by around INR250 billion.