DLF to raise Rs 7,000 cr from non-core assets sale

DLF, the country's largest realty firm, plans to raise up to Rs 7,000 crore in the next 2-3 years from the sale of non-core assets to cut its net debt, which currently stands at a whopping Rs 21,424 crore.

In a presentation, DLF said it has raised the divestment target for non-core assets (including land parcels) to Rs 10,000 crore from Rs 4,500 crore earlier.

The company has already raised Rs 3,070 crore so far from divestment of non-core assets such as hotel plots and out of that, Rs 1,270 crore was garnered last fiscal.

"Non-core asset divestments to gain momentum... Rs 6,000-Rs 7,000 crore of asset divestments expected in next 2-3 years," the company said, adding that it is hoping for higher realisation on some assets planned for sale this fiscal.

DLF said it aims to become a net debt-free entity in the next 3-4 years through internal accruals and sale of non-core assets.

However, the net debt of the company increased by Rs 552 crore during the fourth quarter of 2010-11 and stood at Rs 21,424 crore, mainly due to strategic investments in land aggregation and capex of Rs 1,800 crore last fiscal.

Besides the sale of non-core assets, the company expects to generate "faster cash flows" from operations.