Hubtown may also exit Prabhadevi project

After serial entrepreneur C Sivasankaran exited a realty project at Prabhadevi in central Mumbai, developer Hubtown, that owns 50 per cent in it, is looking to do the same and move out of it completely, said two persons familiar with the development. Hubtown hopes to get around Rs 450 crore from the deal, in line with what Siva had got earlier in July. It plans to sell its stake to another real estate developer that can execute the project. However, the stake sale depends on valuation since the developer, which has a consolidated debt of Rs 1,850 crore by March-end, would use the funds to repay some of its debt. The 5.3-acre land parcel in Prabhadevi has a total development potential of 2 million sq ft and Hubtown is still awaiting some approvals to build an over 60-storey five-star hotel on the prime plot located near Siddhivinayak temple. In July, serial investor C Sivasankaran sold his entire 50 per cent stake in the project for Rs 450 crore to private equity firm Red Fort Capital, valuing the joint venture on this Hindoostan Mills property at Rs 900 crore.