DLF sells land parcel in Kochi for Rs 111 cr

The firm has been selling non-core land parcel and businesses for the last three-four years to focus on its core real estate business

Realty major DLF Ltd has sold four acres of land in Kochi for Rs 111 crore as part of its plan to sell non-core assets to boost cash flows and reduce debt.

"We have sold a land parcel in Kochi for Rs 111 crore," DLF Group Chief Financial Officer (CFO) Ashok Tyagi told PTI.

The land was sold earlier this month to a local developer.

DLF has been selling non-core land parcel and businesses for the last three-four years to focus on its core real estate business as well as to improve its cash flows and reduce debt.

Country's largest realty firm has raised more than Rs 10,000 crore through this process.

DLF recently sold its cinema business DT Cinema for Rs 500 crore. It had sold last year hospitality chain Amanresorts to its original founder Adrian Zecha for about Rs 2,200 crore.

That apart, the company has exited from insurance and wind energy businesses. In 2012, DLF had sold 17 acre land parcel to Lodha group for Rs 2,700 crore.

In view of sluggish housing sales and high debt, DLF is looking to raise private equity funds at projects level and also partially monetise its rental properties, which comprises of about 30 million sq ft with Rs 2,400 crore annual rental income.

According to a presentation to analysts, DLF's net debt increased to Rs 21,598 crore as on June 30, from Rs 20,965 crore at the end of the March quarter.

Of the total debt, the company said that the net debt attributable to development business (DevCo) was Rs 7,598 crore while Rs 14,000 crore pertained to rental arm (RentCo).

Last week, DLF reported 5 per cent decline in net profit to Rs 121.55 crore for the quarter ended June 30, due to higher finance cost and rise in operational expenses.

However, total income increased to Rs 2,345.62 crore in June quarter from Rs 1,851.6 crore year-ago.