Parsvnath Developers Ltd, the New Delhi-based developer, has postponed its luxury mall-cum-office complex in Connaught Place, the commercial hub of Delhi.
The plan was to develop mall-cum-office space with two floors of luxury brands and rest as office domain with the total developable area of the mall is expected be 1.6 lakh sq ft.

Last year, the developer acquired a plot in Kasturba Gandhi Marg in Delhi for Rs 200 crore and was planning to invest Rs 100 crore for developing it. The construction was expected to start in September last year and the complex was become fully operational by 2010 end.

With no construction in site, analysts covering the company believe that Parsvnath may look to sell off the land to pay off its mounting debt.
But the developer has no immediate plans to sell off its prime land.

A Parsvnath spokesperson told DNA Money, "We have not received various clearances to start construction on the site including environmental clearance. And that is why the plans have been deferred. But, in any case we are concentrating on completing our existing projects rather than starting new ones. Selling off land to pay off debt would be out last resort for payments, we are not looking to sell that land."

Parsvnath had said last year that it is expecting rental income of around Rs 1,000 per sq ft for retail and Rs 500 per sq ft for office space from the mall complex.
The company has a total net debt of Rs 1,825 crore and it is looking to convert at least Rs 400 crore of that into long-term debt and restructure part of it, according to its official.
Vivek Seal DNA-Daily News & Analysis Source: 3D Syndication