DLF in talks with S'pore, Abu Dhabi wealth funds to sell Aman stake

DLF, the country's largest real estate company, is in talks with sovereign wealth funds — Government of Singapore Investment Corporation (GIC), Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority — to sell majority stake in luxury hotel chain Aman Resorts.

Sources close to the development told Business Standard that the deal could be worth around Rs 2,000 crore.

When contacted, a senior spokesperson of DLF said: “We cannot comment on market speculations.” In an emailed reply, GIC spokesperson Jennifer Lewis said: “GIC has no comment on this matter.” ADIA and KIA could not be contacted for comments.

DLF has been scouting for a potential investor for Aman Resorts, which has 23 hotels across 12 countries. DLF owns 97 per cent stake in the hotel chain, which it bought in 2007 for $400 million. The remaining stake is held by Adrian Zecha, the founder of Aman.

DLF has been selling non-core assets to repay its debt. The company's debt was estimated at Rs 14,821 crore at the end of March. Around 2,600 crore is coming up for repayment during the current financial year.

Apart from its stake in Aman Resorts, DLF is also looking to sell its wind energy business and land parcels across the country. The value of the land parcel on the block is estimated around Rs 2,700 crore. By selling the three sets of assets, the company is looking to mop up nearly Rs 6,000 crore.

GIC, which has been tasked to manage Singapore’s foreign reserves, depends on three subsidiaries — GIC Asset Management Pte Ltd (public markets), GIC Real Estate Pte Ltd and GIC Special Investments Pte Ltd (private-equity investments) — to manage its portfolio. Morgan Stanley had estimated GIC’s assets at $330 billion, making it the world's third largest sovereign wealth funds.

Similarly, ADIA is a sovereign wealth fund owned by Abu Dhabi. According to estimates its assets are between $650 billion and $875 billion.