DLF seeks to opt out of Mumbai development project
03 Jul 2009
In deleverage mode, leading real estate firm DLF Ltd is looking to sell its 50 per cent of its stake in the special purpose vehicle created with Mumbai's Akruti City Ltd to build a commercial-cum-residential project in Andheri East.
Named Niharika, the project is a 50:50 joint venture with Ackruti City. DLF is looking to sell 9 lakh square feet in Niharika, a retail and commercial property. DLF is likely to raise up to Rs400 crore from the sale of 900,000 sq ft space in the project to a foreign fund, according to a Moneycontrol report.
The move comes as a part of the developer's plan to generate cash flow through sale of hotel plots and non-core assets. DLF has raised around Rs 1,000 crore through the sale of land parcels across four cities in the past 4-5 weeks, and is on course to close more
such deals worth another Rs 500 crore in the coming weeks.
This is in keeping with the country's largest real estate developer's announced objective of raising Rs5,500 crore through asset sales, and use these funds to halve its Rs14,000 crore debt by the end of this fiscal year. DLF has sold land parcels in Mumbai, Baroda, Gangtok and the Delhi region, according to an Economic Times report.
The company refused to comment officially, saying it does not react to media reports.
DLF sold 66 per cent of its stake in Hindustan Spinning and Weaving Mill in central Mumbai to a Chennai based entrepreneur for Rs310 crore. Akruti City had been DLF's joint venture partner in that project too.