MUMBAI/BANGALORE: DLF, India's biggest real estate developer, has put on the block the second phase of its under-construction IT special economic zone project in Pune'sHinjewadi for an anticipated Rs 250 crore, a move in line with the company's strategy to pare its debt by exiting non-core projects and businesses.
The developer has started negotiating with private equity firms and local developers for selling the 29-acre project which has a built-up area of 2.9 million sq ft, barely a week after it sold its 74% stake in a life insurance joint venture, three persons close to the development told ET. DLF and its JV partner Hubtown have already sold the completed 1.8-m sq ft first phase of the project to Blackstone for Rs 810 crore.
"As the project is still under construction and tenancy agreements are yet to be entered into, the valuation for the second phase of Pune SEZ will be lower than the completed and leased-out first phase, which was sold to Blackstone," said one of the persons, who did not wish to be named. "The developer is looking to conclude the transaction by the end of the year."
DLF puts Pune IT special economic zone on the block
In response to an email query, DLF said the company did not comment on market speculation. Cushman & Wakefield, appointed by the developer for executing the transaction, also refused to comment. The intended sale is part of its strategy to reduce its debt by Rs 4,000 crore by the end of this financial year.