DLF to setup disposal of non-core assets for value of Rs 1300 crore
India’s largest real estate company, DLF steps up the disposal of non-core assets to pay down debt of almost $5 billion. It will sell its shareholding in two IT SEZs in Pune and Noida, for a combined value of Rs1300 crore. The transactions have not yet closed. Two partners, Ackruti City and The 3C Company, will also exit. Blackstone is likely to buy the IT SEZ in Pune for Rs900 crore, while a high net worth investor will buy the Noida IT Park for Rs400 crore. DLF declined to comment, saying it does not respond to speculation, but a senior executive confirmed the two deals.
DLF’s has a 70% stake in each of the two properties. The DLF-Ackruti IT SEZ in Pune’s Hinjewadi area has a total area of 5 million sq ft of which 1.8 million is currently operational. It has prominent tenants such as Cognizant Technologies, Tata Consultancy Services, Barclays and Novalis. Ackruti City is a co-promoter in the Pune venture, while The 3C Company is a partner in the Noida IT park both with 30% each. Both partners are selling their stakes.
The company had said last month that it plans to sell developed assets, including IT Parks and its hotels business and raise about Rs 7,000 crore over the next two years to reduce its debt. DLF’s net debt at the end of March was close to Rs 24,000 crore. “The sale will include both leased and under construction portions of the IT SEZ,” said the source.
DLF had initially planned to raise Rs 4,500 crore from sale of its non-core assets. In a recent presentation, it has said that it now plans to raise Rs 10,000 crore in the next 2-3 years. It has already raised Rs 3,000 crore over the last 18 months. The two sales are in line with DLF’s strategy to divest non-core assets.
In an email response, a DLF spokesperson said: “We have already outlined our medium-term strategy on unlocking of non-core assets. We have nothing further to add on any specific transaction at this juncture.”
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