Suzlon monetises non-core assets worth Rs 440 crore

Renewable energy solutions provider Suzlon Group on Wednesday said it has monetised non-core assets worth Rs 440 crore.

This move is part of Suzlon's broader growth strategy of becoming asset-light and unlocking capital for growth to fund execution of its expanding order book with internal resources, a company statement said.

Suzlon Group announced disinvestment of its corporate headquarters One Earth.

The property has been sold to OE Business Park Private Ltd (OEBPPL), a special purpose vehicle, shares of which are held by funds managed by 360 ONE Alternates Asset Management Ltd.

Under the terms of the agreement, Suzlon will continue to occupy the property as a lessee.

Suzlon has also entered into an option agreement to buy the shares and securities of OEBPPL at a future date.

This sale and leaseback arrangement will not impact Suzlon's operations.

Additionally, the company has the flexibility to optimise lease costs by sub-leasing or licensing part of the property.

Himanshu Mody, Chief Financial Officer, Suzlon Group, said in the statement, "This move of monetizing our non-core assets has been part of Suzlon's long-term strategy for past few years. We have the largest order book of nearly 4 GW and growing.

"By unlocking capital from non-core assets, we can concentrate and reinvest more in our core business. Now that we are debt-free, we are committed to taking strategic decisions that are conducive to our growth and serve our commitment to create sustainable value for our stakeholders."