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DLF aims to garner Rs 3,000 cr from Mumbai land

Sale proceeds will be used to reduce firm's debt of Rs 23,000 cr

Press Trust of India  |  New Delhi 

The country's largest real estate firm today said it is targeting to raise around Rs 3,000 crore from sale of its 17.5 acre prime land in Mumbai and the deal is expected to close this quarter.

had bought this land in 2005 from the National Textile Mills for about Rs 700 crore. It now wants to sell the land as part of its strategy to divest non-core assets to reduce its whopping debt of Rs 22,725 crore.

"From the Mumbai deal, we are aiming to raise around Rs 3,000 crore. The deal will be finalised within this quarter," Group Executive Director Rajeev Talwar told PTI on the sidelines of an Assocham conference on land bank.

When asked whether the company is in talks with Mumbai- based Lodha Developers, he said: "We are discussing it with not only one, but many players".

Earlier this week, sources had said that talks with the Lodhas are in advanced stages for a valuation of about Rs 2,700 crore and the deal could be closed shortly.

Country's largest realty firm is insisting on full payment at one go and does not want staggered payments, sources had said.

In the last couple of years, has raised Rs 4,844 crore from sale of non-core assets, which included hotel plots and IT Park/SEZs.

has put its luxury hospitality chain Amanresorts, wind energy and a huge land holding in Mumbai on the block as part of its plans to exit from non-core ventures and focus only on the property business. It expects to raise about Rs 2,000 crore from Amanresorts and Rs 1,000 crore from wind energy.

Recently, had said that the company plans to cut its debt to about Rs 17,000 crore in this fiscal while asserting that it was not unduly "perturbed" by the massive debt.

"We are not unduly perturbed by the debt. We have annual rental income of Rs 1,800 crore from a leasing portfolio of 28 million square feet of office and retail space across the country," Talwar had said.

First Published: Wed, August 01 2012. 15:13 IST