Anant Raj to sell hotel, land for lowering debt

Real estate firm Anant Raj Ltd has reduced debt by 6 per cent to Rs 1,403 crore last fiscal and is considering to sell some of its hotel properties and land parcels to further cut the borrowings.
Delhi-based Anant Raj said it has also invested about Rs 1,000 crore in last three years to purchase 270 acre land, mostly in Gurgaon.
"The company was able to reduce its debt by Rs 90.98 crore and the total debt for the year 2013-14 is Rs 1,403.14 crore against Rs 1,494.12 crores last year," Anant Raj Chairman Ashok Sarin told shareholders in the company's annual report for 2013-14 financial year.

The company's Annual General Meeting (AGM) will be held on September 30.
Sarin said the company, as part of its strategy to divest non-core assets, sold some land parcels and utilised a part of it towards debt repayment.
"Your company is determined to reduce this debt further in the next couple of years and is considering sale of one or two of its hotel properties and/or hospitality land parcels," he added.

Anant Raj owns 14-15 prime land parcels for hotel development, of which 4 are already under operations.
Sarin said that with demand picking up, the additional cash flows would also be used to reduce debt.

Stating that the company was debt-free three years-ago, Anant Raj said that it has invested in acquiring new land parcels and completing projects during last few years.
Both land acquisition and construction are capital intensive activities that led to increase in debt, it added.
"We have started reducing our debt. Going forward, we are hopeful to reduce our debt further in the current year. The company owns 14-15 attractive land parcels, ideally suited for hotel development. With the new increase announced in FAR, the company is actively considering selling 1-2 land parcels, which will further reduce debt," Anant Raj said.

The company has a land bank of about 1,100 acres, which is fully paid up. Of this, 430 acres of land is in Delhi, and the remaining is within 50 km radius of Delhi.
"In the last three years, we have acquired 270 acres of land specifically for residential projects amounting to Rs 1,000 crores. A major part of this recently acquired land is located in the premium residential area of Gurgaon," it said.
Anant Raj posted net profit of Rs 100.38 crore on revenue of Rs 503.11 crore for 2013-14.