Reliance Group to lease out company headquarters to cut debt

Vastavam web: Reliance Group is looking to lease out its headquarters in one of Mumbai’s prime suburbs, the telecoms to infrastructure conglomerate said, a move that will help the company to raise funds to pay off debt. Some of the companies under the Reliance Group conglomerate, controlled by businessman Anil Ambani, have been hit by a spate of credit ratings downgrades and auditing issues.

“Reliance infrastructure plans to monetise its marquee Reliance Center Office located in Santacruz East, Mumbai,” the company said in a statement. Ambani is the younger brother of Asia’s richest man Mukesh Ambani. A feud between the brothers over control the Reliance empire broke out after the death of their father in 2002. The Reliance businesses were split up in 2005 as part of a settlement between them.

That made them both billionaires but while Mukesh’s energy, telecoms and retail conglomerate had gone from strength to strength, Anil’s companies have struggled. Mukesh, however, appears more recently to have offered some kind of support to his younger brother so he could repay $80 million in debt to Swedish telecom company Ericsson.