DLF hoping to mop up 7000 crore in the next two years
The divestment may gain momentum in the current fiscal with higher indicative realisations for ongoing proposals and expected conclusion on some big-ticket items. DLF plans to sell developed properties to reduce its burgeoning gross debt of 23,990 crore.
DLF to sell developed properties to raise 10,000 crore in the next 2-3 years.
Last week, the company reported a consolidated net profit of 344.54 crore in the fourth quarter ended March 11, but that included an income of 93.73 crore brought into the books from the earlier years. India’s largest real estate firm’s tax dues are also on the rise – touching 1,703.04 crore in the fiscal year 2011.
Over the last one-and-a-half years, the real estate major had already sold some non-core assets such as hotel sites in Delhi and Hyderabad as well as non-contiguous land parcels to rake in around 3,000 crore. But it has never sold its buildings and other developed assets. The company said it could sell non-core assets “like certain IT Parks that yields low return”. “We are looking at combination of certain assets and underdeveloped non-contiguous land parcels, which are not core to our mid-term strategy,” said Ashok Tyagi, DLF group chief financial officer.
DLF plans to sell developed properties, including five IT parks and its hotel business. DLF’s original plan was to raise 4,500 crore from sale of non-core assets, but now plans to raise 10,000 crore in the next 2-3 years. With 3,000 crore already in its kitty from sales of non-core assets in the last eighteen months, it is now identifying properties to raise the balance 7,000 crore.
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