DLF to raise up to Rs 3K cr through sale of non-core assets
Realty giant DLF today said it plans to raise up to Rs 3,000 crore in the next 12-18 months through sale of non-core assets for reducing its net debt.business Updated: Sep 07, 2010 16:02 IST
Realty giant DLF today said it plans to raise up to Rs 3,000 crore in the next 12-18 months through sale of non-core assets for reducing its net debt.
"We are looking at reducing our debt through internal accruals, which would include offloading of our holdings in non-core assets," DLF Group CFO Ashok Tyagi told PTI.
The company's net debt stood at Rs 18,463 crore at the end of the June-quarter and it plans to cut the debt through operational cash flows and sale of non-core assets, which includes land parcels meant for development of hotels.
"In the June quarter, we have offloaded non-core assets worth Rs 300 crore. We plan to raise Rs 2,200-3,000 crore in the current fiscal through exit of our holdings in the non-core business," Tyagi said.
DLF, the country's largest realty firm, had targeted to raise Rs 5,500 crore through sale of non-core assets. In last fiscal, the company had raised Rs 1,800 crore and decided to retain wind power business worth Rs 1,000 crore.
The company is exploring the possibilities for strategic partnerships in its hospitality venture Aman Resorts where it holds 97 per cent stake. DLF plans to expand its realty business in the second half of the current fiscal as office space segment is showing signs of recovery.
"We are looking at expansion in the second half of the year. The lease offering (of commercial properties) has increased in the last 6-8 months," Tyagi said.
DLF reported 3.80 per cent jump in its consolidated net profit for the quarter ended June 30 to Rs 411.03 crore from Rs 396 crore in corresponding period of the last fiscal. The consolidated sales and other receipts rose 22.95 per cent to Rs 2,028.53 crore in the quarter under review from Rs 1,649.86 crore in the same period last year.