Aman Resorts on sale
The largest real estate builders in India DLF will sale its Aman Resorts. The builder took the decision to reduce its rising debt.
DLF is trying to reduce the burden of $4.2 billion debt by selling its non-core assets.
DLF is hoping to get a value close to $ 400 million from the Aman Resorts deal.
DLF bought Aman Resorts, which has a total of 23 hotels, in 2007. The sale of the hotel chain will help DLF to reduce its debt by around Rs 22,758 crore.
According to sources DLF is also planning to sale its stake in its life insurance joint venture to HCL Group for about Rs 500 crore to pay a part of its debt.
The company is in talks with two parties and is likely to sign the memorandum of understanding for its hotel asset by the end of this month. Since hotel businesses are capital intensive and requires around five to seven years to break even as against commercial and residential realty which requires around 18-36 months, most of the real estate companies are planning to sell their hotels.
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Real estate builders are selling Hotels to reduce Debt
Source: First Post
