Bengaluru: The Coffee Day Group has sold its 100-acre tech park in Bengaluru to private equity player Blackstone. The deal is valued between Rs 2,600-Rs 3,000 crore, as first reported by CNBC-TV18.
The transaction will be completed once Blackstone finishes its due diligence which should be completed in the next 30-45 days.
Coffee Day and Blackstone had held talks for the tech park earlier this year for a deal value of Rs 2,700 crore but the talks failed to materialise then. Following the confirmation of the death of Cafe Coffee Day (CCD) founder VG Siddhartha on July 31, the CDEL board formed an executive committee to actively look for opportunities to deleverage the group.
The talks with Blackstone revived over the last two weeks with Tanglin Developments, a real estate subsidiary of Coffee Day Enterprises, which runs the Global Village tech park in Bengaluru, finalising the deal today.
The Global Village Tech Park is spread in close to 100 acres and houses several firms including IT companies Mindtree, Mphasis and others.
According to a letter believed to be written by Siddhartha a few days before his demise, the tech park is valued at Rs 3,600 crore and the rental cash flow for the next 12 months is expected to be around Rs 250 crore.
The CCD board constituted an executive committee earlier this month to look at deleveraging opportunities to reduce the company's debt, which is estimated to be over Rs 65,000 crore.
In the letter purportedly written by Siddhartha, the CCD founder mentioned that the company was in talks with players such as Coca Cola and ITC for some of its business.
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