Indiabulls Real Estate Ltd.'s board resolved to sell its residential and commercial assets in Chennai, India, and affirmed the resolutions passed by its subsidiaries, which will result in the reorganization of its commercial leasing business.

The diversified real estate company considers Chennai to be a noncore market for its real estate business operations and will assess and finalize available sale options.

Additionally, with regards to the restructuring of its commercial leasing business in India, directors of subsidiaries Navilith Holdings Ltd. and M Holdco1 Ltd. gave their consent on the execution of nonbinding agreements with a third-party institutional investor. The transaction is expected to close March 31, subject to the attainment of necessary approvals.

The move was initially presented before the board at an April 17 meeting, whereby the company proposed to transfer its assets and investments, related to the leasing and commercial business, to Indiabulls Commercial Assets Ltd. It aimed to explore opportunities that would bring in strategic investments or carry out a demerger of Indiabulls Real Estate, with the resultant new entity pursuing a share listing.