HDFC Bank sells HDFC House & other Real Estate assets worth over Rs. 3,000 crore

The highest-valued bank in India, HDFC Bank, is getting ready to sell off a number of important commercial properties in a major strategic move.

The transaction, which would bring in about Rs. 3,000 crore, follows the bank's 2023 merger with HDFC, its parent mortgage lender.

According to a report by The Economic Times, the properties on the block include residential apartments that were previously allotted to HDFC's top officers as well as the HDFC House in Churchgate, South Mumbai.

An estimated Rs. 2,400 crore is the value of the commercial assets, which are dispersed over south Mumbai, Kalina, Chandivali, Kolkata, Mysore, and Bengaluru. It is anticipated that the residential apartments will sell for about Rs. 800 crore.

Previously, Hindustan Unilever's headquarters were located in the HDFC House, which was acquired for Rs. 300 crore in 2014. However, this campaign to raise money will not include HDFC's former headquarters, Ramon House.

The bank's goal to simplify its real estate holdings and improve its liquidity position after the merger is emphasized in the divestiture plan. According to the report, which cited a source with knowledge of the matter, this strategic choice marks a significant change in HDFC Bank's asset portfolio after the merger as the bank shifts its attention from managing tangible assets to its core banking functions.

According to industry analysts, developers, institutional investors, and real estate investment firms looking to increase their presence in these desirable areas may be interested in the sale. The trend of Indian financial institutions selling up non-core assets to strengthen their balance sheets is probably going to be strengthened by this action.