Suzlon Energy has finalized the sale of its corporate headquarters, ‘One Earth,’ in a ₹440 crore sale-and-leaseback transaction with OE Business Park Private Limited, a special purpose vehicle managed by 360 ONE Alternates Asset Management. The deal, formalized on September 4, allows Suzlon to lease back the office space for up to five years, ensuring continued operations while monetizing a non-core asset, according to a company statement.
“This has been under consideration for some time. We finally decided to proceed with the transaction to fund the core business of our company,” said Himanshu Mody, Chief Financial Officer of Suzlon.
The sale of the Pune-based property is part of Suzlon’s broader strategy to focus on its core manufacturing activities and enhance its financial position. Under the terms of the agreement, Suzlon retains a call option to repurchase the property, while the new owners have a put option to sell it back under pre-agreed terms.
This strategic move highlights Suzlon’s commitment to streamlining operations and boosting liquidity as the company faces intensifying competition in the renewable energy sector. India’s push to expand its renewable energy capacity in line with climate goals further emphasizes the need for Suzlon to optimize its resources.
Last month, Suzlon strengthened its operation and maintenance (O&M) services in the wind energy sector by acquiring a 76% stake in Renom Energy Services for ₹400 crore. However, the company does not anticipate any immediate asset sell-offs in the near future, Mody confirmed.
Suzlon’s order book stood at 3.8 gigawatts (GW) as of the June 2024-ended quarter (Q1 FY25), underscoring the company’s strong positioning in the market.
“Now that we are debt-free, we are committed to making strategic decisions that support our growth and deliver sustainable value to our stakeholders,” Mody added. He also mentioned that Suzlon will continue to pursue both organic and inorganic growth opportunities, exploring potential acquisitions as part of its long-term strategy.
This transaction marks another step in Suzlon’s efforts to maintain its competitive edge in the fast-evolving renewable energy landscape.
