Board also approves divestment of subsidiary AlphaGrep to a software firm

A fortnight after the demise of billionaire-entrepreneur V.G. Siddhartha, Coffee Day Enterprises, founded by him, has decided to sell a piece of its real estate located on Mysore Road in the city for almost ₹3,000 crore.

The board of directors of Coffee Day Enterprises on Wednesday approved the disinvestment of Global Village Tech Park, owned by its realty subsidiary Tanglin Developments Ltd., to New York-based private equity major Blackstone Group.

As per a stock market filing, the transaction value would be in range of ₹2,600 to ₹3,000 crore.

Global Village Tech Park is spread over 120 acres with a total built-up area of 3.3 million sq. ft. Closure of the transaction is subject to completion of Blackstone’s due diligence, documentation and receipt of requisite regulatory approvals, which is expected in the next 30-45 days. The board also discussed ways for further deleveraging of the group.

It also provided an in-principle approval for the disinvestment of its step-down subsidiary, AlphaGrep Securities in favour of Illuminati Software for about ₹28 crore.

“The above mentioned transactions will significantly help in deleveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders,” said the company in a statement.

Coffee Day Global, Tanglin Developments, Sical Logistics, Way2Wealth and Coffee Day Hotels & Resorts that own brands like Serai are the main subsidiaries of Coffee Day Enterprises.