Transaction completed on September 4
MUMBAI: Suzlon Energy has finalized the sale of its corporate headquarters, ‘One Earth,’ in a Rs 440 crore sale-and-leaseback deal with OE Business Park Private Limited, a special purpose vehicle managed by 360 ONE Alternates Asset Management.
The transaction, completed on September 4, involves Suzlon leasing the office space back for up to five years, allowing the company to continue its operations while monetizing a non-core asset.
Himanshu Mody, Chief Financial Officer of Suzlon, commented, “This has been on the horizon for some time. We decided to move forward with this transaction to fund our core business.” The sale of the Pune property aligns with Suzlon’s broader strategy to concentrate on core manufacturing activities and strengthen its financial position.
Call option to repurchase the asset
Under the agreement, Suzlon retains a call option to repurchase the asset, while the new owners have a put option to sell the property back to Suzlon under specified terms. This move highlights Suzlon’s efforts to streamline operations and enhance liquidity amid increasing competition in the renewable energy sector, as India pushes to expand its renewable energy capacity.
Last month, Suzlon acquired a 76 per cent stake in Renom Energy Services for Rs 400 crore to bolster its operations and maintenance (O&M) services in the wind energy sector. The company does not anticipate any further sell-offs in the near future, according to Mody.
With an order book of 3.8 gigawatts (GW) as of Q1 FY25, Suzlon is now debt-free and focused on making strategic decisions to foster growth and deliver sustainable value for stakeholders.
Mody also mentioned that Suzlon will actively seek both organic and inorganic growth opportunities.
