DLF Ltd, the country’s largest real estate developer, is looking to sell land assets over the next one year to raise Rs 2,000 crore in a bid to retire debt.
DLF Ltd, the country’s largest real estate developer, is looking to sell land assets over the next one year to raise Rs 2,000 crore in a bid to retire debt.
The plots include hotel land, residential plots and commercial land, Rajeev Talwar, DLF’s group executive director told DNA.
“We will raise Rs 2,000 crore by selling the non-core land plots. We have identified some of the plots and money is expected to be raised this year.”
Talwar, however, did not provide details of the quantum of land to be sold, or the location.
DLF has already reduced its land bank by about 43%, primarily by exiting two large township projects, since the long gestation period of the projects did not gel with its immediate plans. Its land bank is currently at 425 million square feet (msf), down from 751 msf earlier. In fact, exiting the two projects has cleared its land liabilities of Rs 5,380 crore, which was supposed to be paid once the land was acquired.
The company has net debt of Rs 13,958 crore, of which Rs 3,591 crore is due this fiscal. It already has a new long-term loan of Rs 2,500 crore sanctioned.
DLF will also monetise assets by selling its wind power business for Rs 900 crore. Exiting the Delhi convention centre would fetch Rs 850 crore. Then, there is a refund of Rs 400 crore from the state governments by exiting the two townships and the cash flow from residential projects.
The company said it would reduce its outstanding debt by half this fiscal by raising about Rs 5,500 crore, including proceeds of the plot sales.
Meanwhile, the developer has also put 11 million square feet of office and retail projects on hold as it will wait and watch for the current macro trends to improve. It has about 36 msf under construction, and an additional 12 msf that has been launched but where construction is yet to commence.
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