The Reliance Communication of India has announced it would be spinning off its real estate business to a separate unit. This is a move that the third largest mobile phone carrier in terms of customer base has done to focus its core business.

The unit would be working with global partners in order to develop real estate in the country for land located in Mumbai and New Delhi according to a statement from Reliance Communications.

The estimated value of the real estate business when fully developed would be estimated to be more than INR120 billion or US$2 billion.

Reliance Communication shareholders would be receiving feee shares in the new company named Reliance Properties pro rata. According to the mobile carrier, a panel would be created by the company's board of directors would work out the details of their demerger.

Bilionaire Anil Ambani has controlling majority over Reliance Communications is by far the most leveraged among the listed telecommunicatons carriers in India. It has been unsuccesful though in cutting its debt through sales of shareholdings or list shares of its portfolio companies.