DLF is unfazed with its debt of Rs 23,000 crore and will lower it to about Rs 17,000 crore this fiscal with plans to sell two of its big-ticket-non-core businesses which includes its luxury hospitality chain Aman Resorts.
The real estate giant has put its Aman Resorts, wind energy and a huge land holding in Mumbai on the block as part of its plans to exit from non-core ventures and focus only on the property business.“We are not unduly perturbed by the debt. We have annual rental income of Rs 1,800 crore from a leasing portfolio of 28 million square feet of office and retail space across the country,” DLF Group Executive Director Rajeev Talwar said in a report by Hindu Business Line. The rental income, which is growing every year, roughly equals the interest payout on the company’s borrowings. DLF expects to raise Rs 6,500 crore from sale of non-core assets this fiscal, of which Rs 5,000 crore would be utilised to repay debt and the rest will be used for capital expenditure, he added. “The debt will come down to a level of about Rs 17,000 crore by end of this fiscal,” Talwar said. He also said that negotiations are at present on with potential buyers and deals to sell at least two out of the three non-core businesses could happen “any time“. Talwar, however, refused to divulge details. “All I can say is two deals may close by September or October.” Sources said DLF may realise around Rs 2,000 crore from sale of 21 properties under brand name Aman Resorts, Rs 1,000 crore. Talwar said DLF will not sell the Lodhi Road property of Aman Resort in the heart of national capital as it wants to retain it for the land value. The company had posted a net profit of Rs 1,200 crore in 2011-12 fiscal on a revenue of Rs 10,224 crore.
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