DLF’s debt plan may trip on slow economy

According to Mr. Rajeev Talwar, group executive director, DLF, ''Our Company's target is to offload debt of Rs 6,000-7,000 crore in the next two years. “This reduction would be achieved through a mix of cash flows and sale of non-core assets''
But many analysts feel, doubtful the target will be achieved.
Stake sales in DLF’s IT park projects in Noida and Pune are under consideration.
DLF has a land bank of close to 370 million square feet, of which, Talwar said, 10 per cent could be non-core. However, analysts are not optimistic about the company’s debt reduction plan.
The main  question is will it happen? The economy is not in a good shape. There needs to be a buyer as well for such a huge sale. Certain special purpose vehicles of the company have ready buyers and might be sold, but to sell all planned assets looks difficult. The size of these SPVs is very small compared to the larger picture that we are discussing.

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