Property giant DLF, which missed its debt reduction target in 2013-14, wishes to sell more properties and land parcels it considers “non-core”, said sources in the know.
As part of the plan, the company is selling its upcoming information technology park in Hinjewadi, Pune, aiming at Rs 300 crore from the sale, they said. DLF wants to use the proceeds to reduce its debt, of Rs 18,500 crore as of March-end. The two million sq ft IT park is under construction and DLF wants to sell as it is a “non-core asset”, said sources. This is the second commercial property DLF is selling in Pune; it sold an IT park in the city to Blackstone earlier for Rs 810 crore.
A DLF spokesperson confirmed the sale plan. Though sources said the company was also looking to sell a 20-are lot near Mumbai, the spokesperson denied having any land parcel there.
DLF wanted to reduce its net debt to Rs 17,500 crore by end-March; instead it was Rs 18,526 crore. DLF has already said its plan to reduce debt would be delayed by up to two years. Early last year, the company had said it aimed to reduce the debt, then over Rs 21,000 crore, to Rs 10,000-11,000 crore through the sale of non-core assets and improved cash flow.
“It will take 18-24 months to come back to the original target as articulated in February 2013 for normalised market conditions,” the company said in its post-financial result presentation last Friday.
Besides selling its luxury hotel chain, Aman Resorts, for Rs 2,250 crore early this year, DLF has raised a little over Rs 1,000 crore from the sale of windmill farms and a majority stake in a life insurance venture, among ohters. It had earlier raised Rs 1,863 crore through an institutional placement programme.