MAN Industries (India) wholly owned subsidiary Merino Shelters Pvt Ltd (MSPL), has entered a pact with realty developer Paradise Group to monetise its 6-acre land parcel and development rights thereon in Navi Mumbai’s Nerul locality for over Rs 720 crore.

As per the terms of the agreement, the company has received upfront amount of Rs 70 crores and out of total area of the developed property the company will get 30% area equivalent to around 450,000 sq ft RERA carpet area.

This developed area is estimated to have a monetising value of around Rs 650-Rs 700 crore over a period of 5-6 years. The total monetising value would be about Rs 720-Rs 770 crore, the company said.

“The management intends to monetize its non-core assets and focus on strengthening its core line pipe business and support its ongoing and future expansion plans like getting into high-value segments and entry into new geographies. This move reinforces MAN Industries’ consolidation plans,” said Nikhil Mansukhani, MD, MAN Industries (India).

The company has inked the Deed of Assignment for the land parcel located opposite D.Y. Patil Stadium with Paradise Green- Spaces LLP, part of Paradise Group.

The funds generated from the monetization of assets will be utilised to support the company's expansion plans, driving growth and unlocking significant value for shareholders, the company said.