DLF plans to monetize some more housing projects through private equity

Q: As per current report, DLF is planning to monetize some more housing projects through private equity.

Amreesh Murugan,

26th October 2015

Real estate News in Mumbai

housing projects

private equity

dlf group

dccdl

dlf ltd

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It means DLF would continue to hold 60% stake in DCCDL. Promoters will re-invest a significant part of the amount collected from the proposed sale in DLF Ltd, which in turn would utilise this fund to reduce its debt.

Rental business' debt could rise a bit till promoters sell their stake in DCCDL and reinvest significant part of that amount in DLF,

Bulbul Verma,

27th October 2015

Comment

In September 2015, DLF has sold about 50% stake each in 2-upcoming projects in the national capital to Singapore's sovereign wealth fund GIC for Rs 1990 crore. It is also heard that the company has identified few more projects in Gurgaon and other cities for divestment.

Shantanu Kumar, Mumbai

26th October 2015

Comment

Yes, and the company had announced in February this year that it would raise over Rs. 3000 crore through divestment or joint ventures in certain projects to improve cash flow and reduce debt. The company is looking at monetising selected residential projects through private equity till the real estate market improves.

Vineet Tendulkar, Mumbai

26th October 2015

It is said that DLF's net debt stood at Rs 21598 crore as on June 30, 2015, of which the net debt attributable to development business (DevCo) was Rs 7598 crore while Rs 14000 crore pertained to rental arm (RentCo).

Shantanu Kumar, Mumbai

26th October 2015

Yes, in the rent business, DLF's Board had earlier this month decided that promoters would sell their 40% stake in the company's rental arm DLF Cyber City Developers Ltd (DCCDL).

Vineet Tendulkar, Mumbai

26th October 2015

Right Amreesh,.
After raising Rs 2000 cr by selling stakes in 2 projects, India's largest realtor DLF is planning to monetize some more housing projects through PE as property sales continue to remain lowered. The proposed deals would be smaller in ticket-size compared with GIC transaction.

Vineet Tendulkar, Mumbai

26th October 2015

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