DLF plans to sell assets worth Rs5,500 crore

04 May 2009

India's largest real estate company DLF Ltd. is planning to generate Rs5,500 crore through the sale of some of its non-strategic assets.

The saleable assets include wind power business, hotels and non-viable development projects in Karnataka, West Bengal and Delhi.

DLF vice-chairman Rajiv Singh told in a presentation to analysts that the move was strategic and only such assets are being disposed of that can be recovered at a later stage. He added that resources worth Rs3,500 crore have already been earmarked and under disposal, and the remaining Rs2,000 crore worth assets are in the course of being identified for putting on block.

The wind power business is expected to yield Rs900 crore, and exiting the two large township projects namely Bidadi in Karnataka and Dankuni in West Bengal, as well as the Dwarka convention centre in Delhi are likely to generate around Rs1,200 crore. 

Besides, the company expects another Rs2,000 crore from DLF Assets Ltd. (DAL), a firm owned by the DLF promoter family. DAL had been buying completed projects from the real estate developer which was suspended in March quarter due to fall in demand.

The asset sale is aimed at reducing the debt burden of the company which has been growing over the past several months.