DLF Ltd: Raise Rs. 3,700 Crore by Selling Non-core Assets..!


As it continues to focus on reducing debt, DLF Ltd, Indias largest real estate firm, is looking to raise Rs. 1,500 crore by hiving off most of its non-core assets.

The building company has just signed three definite agreements to divest two (2) land parcels for about Rs. 700 crore and 60 % ownership in Star Alubuild, a facade engineering and contracting company, for about Rs. 70 crore.

The company aims to complete the sale of most non-core assets this quarter including its exit from insurance business &  will mobilise a slice of over Rs. 3,700 crore through this route, a top group executive.

The Rs. 3,700 crore figure includes.Rs. 1,500 crore from fresh sale of assets and another Rs. 2,250 crore from the balance payment of older transactions that were concluded in 2012, the executive added.

DLF Ltd is also set to raise Rs. 2,000 crore through a share sale next week.These steps should help it bring down its debt to nearly Rs. 15,250 crore from the Rs. 21,000 crore it has on its books now.

In September 2012, DLF Ltd  had run up a peak level debt of nearly Rs. 23,200 crore. It has brought this down a tad below Rs. 21,000 crore after divesting its prime land parcel in Mumbai for Rs. 2,725 crore. It has also lined up other asset sales.These include exiting its insurance venture with US-based Prudential Group &  sale of its investment in a private equity (P/ E) fund managed by Symphony Capital Partners.

DLF Ltd  had invested nearly Rs. 250 crore in Symphony Capital Partners Fund, which had invested in DLF Ltd Asset in 2008.The company has now started the process of partly liquidating this investment.
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