India's largest listed real estate firm DLF is said to be exiting both phases of the Hinjewadi SEZ (special economic zone) project in Pune, a joint venture with Mumbai-based Ackruti City. The move is part of the company's strategy to raise liquidity by selling its non-core assets.
DLF holds about 70% in the project. The company was also learnt to be in talks with a private equity (PE) player to sell its stake in phase 1 of the project. While the KP Singh-led firm was expecting around Rs 900 crore for the stake sale, the PE player was only willing to pay up to Rs 450 to 500 crore, said a person close to the development.
"DLF is also keen on exiting from the second phase of the project and has approached some real estate consultants. The JV has spent Rs 127 crore for the development of the second phase and that would be added to the total valuation," the source said.
The valuation for the second phase, measuring 2.5 million sq ft, is likely to be around Rs 600 crore.
Ackruti, too would exit if it gets attractive valuations, said a senior official who has a direct knowledge of the deal.
"Ackruti officials were keen to know about the valuations and that said that they are open to offers."DLF, with a substantial debt on its balance sheet, had earlier announced plans to exit its non-core assets to service the debt.
"There are certain approvals that DLF needs to take before it sells its stake," said the person close to the development.
"This is the third project where the company is exiting from its joint ventures with the Mumbai-based developer."
In the last three years, DLF had exited the Hindoostan Mill land and another project in Andheri where Ackruti City was a joint partner.
A DLF spokesperson refused to comment and said "We do not comment on market speculation." An email questionnaire sent to Ackruti City did not elicit any response.