DLF to sell 50 percent stake in 4 projects to PE firms for Rs 3000 crore
Stake sale in 4 greenfield housing projects in Delhi-NCR and South India
Feb 23, 2015
Source : The Economic Times

NEW DELHI: Realty major DLF plans to divest around 50 percent stake each in four new housing projects to private equity firms for over Rs 3,000 crore, a senior company official said today.

India's largest real estate firm expects to close some of the deals by June and would utilise the funds to improve its cash-flows that have been affected due to slowdown in housing demand.

"We are looking for private equity in 4 greenfield housing projects in Delhi-NCR and South India," DLF Chief Financial officer (CFO) Ashok Tyagi told .

He said discussions with few private equity players have started but declined to disclose their names.

Tyagi hoped that at least 2-3 PE deals should get closed by June-end. "We are targeting to raise about Rs 2,500 crore by June from 2-3 deals".

Asked about the dilution of stake in each of the 4 housing projects, Tyagi said it would be around 50 per cent.

On the utilisation of funds raised via private equity at projects level, he said the same would be utilised "to augment the operating cash flow of our development arm DevCo".

DLF has divided its real estate business in two parts - DevCo, under which all residential projects fall, and RentCo, which is the rental business from office and retail projects.

"Since sales are slow, we are planning to raise about Rs 3,000 crore through private equity. In the short term, PE fund will be the substitute for the cash flow which would have normally come from sales," Tyagi said.

DLF CFO said out of Rs 20,336 crore net debt, nearly Rs 6,500 crore pertains to DevCo.

"Debt of DevCo will remain around this level in short term and we will pare the debt as and when sales improve," he added.

On RentCo's debt, Tyagi said it would increase in the short term and eventually get reduced through launch of two Real Estate Investment Trusts (REITs).

Earlier this month, DLF had reported 9 per cent decline in consolidated net profit at Rs 131.79 crore for the quarter ended December due to fall in sales and other income.

Its net profit stood at Rs 145.29 crore in the year-ago period.

Income from operations fell 5 per cent to Rs 1,956.72 crore for the third quarter of this fiscal from Rs 2,058.42 crore in the corresponding period of the previous year.

Total income declined by 20 per cent to Rs 2,079.82 crore for the quarter ended December from Rs 2,590.2 crore in the year-ago period.

DLF has a land bank of about 295 million square feet, of which 50 million square feet is under development.

Latest Realty News

Feb 23, 2015
NAGPUR: The new Housing Policy of Maharashtra will be ready for public announcement in the first week of May
Feb 23, 2015
Berhampur: Odisha government has taken possession of over 40 acres of land, belonging to three ponzi companies
Feb 23, 2015
BHOPAL: Promising partnership in housing projects, a company allegedly duped a retired Indian Air Force officer of Rs 8 lakh
Feb 23, 2015
New Delhi: Revival in the Indian Realty sector is still 12-18 months away
Feb 22, 2015
Kolkata: Govt of West Bengal's recent ‘Township Policy’ likely to benefit the developers
Feb 21, 2015
Gurgaon: Portal for affordable housing in Gurgaon to check graft
Feb 21, 2015
GHAZIABAD: The Ghaziabad Development Authority (GDA) has invited applications from builders who are keen to construct affordable houses
Feb 21, 2015
Greater Noida: The Greater Noida Industrial Development Authority (GNIDA) has proposed to amend its building bylaws in order to allow taller buildings in the city
Feb 21, 2015
CHENNAI: People who lose land for open space reservation (OSR) facility like parks can look forward to enjoying the development rights of the forfeited land on their residual plots by transferring the FSI to it
Feb 21, 2015
KOLKATA: After filing the supplementary chargesheet in the Saradha Realty case this week, CBI is focusing on the fourth FIR filed against Saradha Construction

Latest Realty News Of State

Realty Talk's