May 1 India's UB Holdings is in talks
with private equity funds Blackstone and Kohlberg Kravis
Roberts to sell some of its commercial real
estate for 6.5 billion rupees ($123 million), the Times of India
newspaper reported on Tuesday citing unnamed banking sources.
UB Holdings, controlled by flamboyant liquor baron Vijay
Mallya, is part of the UB Group that owns majority of United
Spirits and United Breweries, apart from
debt-laden carrier Kingfisher Airlines, which is
desperately looking for funds to continue operations.
The UB Tower in Bangalore, which Mallya is looking to sell,
is occupied by companies like Apple, Citibank,
and Yahoo, the report said. A UB Group spokesman,
quoting Mallya, denied the company was in talks to sell the real
estate space, the paper reported.
Prakash Mirpuri, a UB spokesman, told Reuters there was no
plan to sell UB Towers. He, however, could not immediately
confirm whether other real estate assets from UB Holdings were
up for sale.
A Blackstone spokesman declined to comment, while KKR could
not be immediately reached by Reuters on Tuesday, which is a
local holiday in India.
UB Holdings and the private equity players are considering a
sale-and-lease-back model, with UB having the right to buy the
property back after a specified period, the report said.
For the newspaper story, please see:
($1 = 52.70 Indian rupees)
(Reporting by Anurag Kotoky in NEW DELHI; editing by Malini