DLF in a debt reduction spree- sells non-core assets
My Home Group, a local builder of Andhra Pradesh is all set to buy a 30-acre land parcel in Hyderabad’s Raidurg area for a whopping Rs 550 crore. DLF, India’s largest real estate developer, is the current owner of this land parcel and they are selling it to use the money to reduce their debt further.
The transaction will be completed in the next one month and a spokesman for My Home Group mentioned that the company did not want to respond to any market rumour on this matter.
A spokesman for DLF stated that the company did not comment on the market speculation. The focus of the company is to reduce debt burden so that the profit margin is not wasted in paying the interests of debts. DLF has reduced its debt to Rs 18,500 crore from over Rs 23,000 crore a few years ago. It hopes to bring this down further to Rs 17,500 crore by the end of the current fiscal.
The Delhi-based developer DLF had bought the land parcel from the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in 2008 in the corporation’s Game Park project that was launched two years earlier.
DLF has been on a drive to sell its non-core assets to reduce debt. In 2013-14, it achieved non-core sales of Rs 5,930 crore by selling its wind energy business, insurance business and Aman Resorts, besides getting a refund from the government for its Dwarka project and the Institutional Placement Programme (IIP). In 2012, it had sold a 17-acre land parcel in central Mumbai’s Lower Parel area to Lodha Group for Rs 2,727 crore.
Source- The Economic Times
Andhra Pradesh Industrial Infrastructure Corporation, APIIC, DLF India, DLF properties, Penalty on DLF
