Date:04/07/2008 URL: http://www.thehindubusinessline.com/2008/07/04/stories/2008070451300300.htm

Back Brigade wins bid for BPL arm’s land

Bangalore, July 3

Real estate developers Brigade Enterprises has won an auction for 10.5 acres of land of Electronics Research Ltd (ERL), a division of BPL, on Old Madras Road, Bangalore. The bid was conducted by Pegasus Assets Construction Pvt Ltd and Deutsche Bank, the stake holders, said a press release from the company. “The location promises considerable growth potential and would help us to develop 1.5 million sq ft of quality office and residential space in the next 3-4 years,& #8221; said Mr M.R. Jaishankar, Chairman and Managing Director, Brigade Group, in the press release. Sources said that the auction was held to recover dues through sale of BPL Group’s ERL assets. The sale proceeds would, however, cover only part of ERL’s debts, they added. Though the company did not divulge the financial aspects of the bid, industry sources said that it could be roughly between Rs 50 crore and Rs 80 crore. However, when contacted, Mr Ajit Nambiar, Chairman and Managing Director, BPL Group, said that the deal was part of the group’s real estate plans. Sources in BPL said that the group has over 20 factories, spread over an area of about 2,000 acres across the country. A large phase of BPL’s financial restructuring was completed in December 2005 with settlement of secured creditors and specific outstanding liabilities. Post-settlement, secured creditors have substantially reduced and stand at Rs 260 crore compared with Rs 1,500 crore on March 31, 2003.

– Our Bureau