DLF to Ease its Debt Burden through Asset Sales
India’s largest developer DLF had said that it plans to sell developed assets, including IT parks and its hotels business as well as hotel plots to raise Rs 7,000 crore over the next two years. The company reported that the money from the sale of non-core assets was Rs 165 crore in April-June quarter. The company is also trying to sell land in other cities such as Hyderabad, Kolkata, and Chennai.
DLF is selling a 13-acre plot in Gurgaon, Haryana, as part of its plan to ease its debt burden through asset sales. About 1 million sq ft of commercial space can be built on the plot, which is expected to fetch Rs 300 crore for the realty firm. A person close to the situation said that DLF is talking to a few large corporates and a high net worth individual. DLF is asking for a price of Rs 2,800-3,000 per sq ft, he said. The land is close to the new southern peripheral road in Gurgaon, which will connect national highway 8 with MG Road.
“We do not comment on market speculation,” said Rajeev Talwar, group executive director at DLF. ET had reported some time ago that DLF is also in the process of selling a 27.4 acre plot of residential land in sector 70A of Gurgaon for Rs 400 crore.
“While debt levels have remained similar to the previous quarter, our momentum on the non-core asset/business divestments have gathered pace and these coupled with operational cash flows will help us in moderating our current debt levels,” Ashok Tyagi, group chief financial officer of DLF, had said in the company’s press release while announcing its first quarter results earlier this month. DLF’s net debt increased by Rs 100 crore during the April-June quarter to Rs 21,524 crore.
DLF has also appointed Goldman Sachs as an advisor to sell Aman Resorts, a luxury hotel chain of 23 hotels across 12 countries it had acquired in November 2007 for $400 million.
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