CL Educate Limited informed the exchanges on Saturday that it is selling one of its last two surplus real estate assets.
Career Launcher Infrastructure Private Limited (wholly owned Subsidiary of CL Educate Limited) has entered into an ‘Agreement to Sell’ dated September 23, 2022 for its Land and Building admeasuring 2.448 Hectares or 6.04 Acres, situated at Khasra Nos. 85, 86, 87 Paiki, 88 Paiki, 96 Paiki and 97 Paiki, situated in Village Jhalaria, Tehsil & District Indore – 452016, Madhya Pradesh, at a total consideration of Rs.17.50 Crores.
The Book Value (WDV) of this asset Rs.16.65 Crores as on March 31, 2022. Advance of Rs 3 crore has been received.
CL Educate, as a strategic decision, has been in the process of exiting asset heavy businesses over the last few years, including its K-12 school business. As a part of this decision, the organization has been looking to convert its real estate bank into cash for redeployment in its core business.
Over the last year, the company has sold 4 other land parcels, for a total value in excess of Rs. 60 crores. The present sale, one of two school plots that the group had remaining, has been sold for a total consideration of Rs. 17.5 crores. Of this, Rs. 3 crores have been received as advance, with the sale expected to be completed by the end of the financial year.
The sale will boost the net cash available with CL Educate. As of 30th June 22, the company had Rs 87 crore of net cash. With this sale, the company can be expected to comfortably cross Rs 100 crore in net cash by Mar’23.
CL expects to invest these funds in its core businesses. This leaves the company with one last real estate asset, another land and building asset of its erstwhile school business. The company wants to liquidate it this year as well.
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