DLF to put up $2 billion from asset sales

No one can get the brunt of a situation unless he/she suffers owing to same. DLF, India’s largest real estate company, is one of them and as per media reports, during the period of next three years it will think over to put up 100 billion ($2 billion) from asset sales since the cash-strapped builder makes every effort to cut down its debt. As stated by Sanjey Roy, Senior General Manager, this consists of the Rs 55 billion they have talked about and in the coming three years they would be raising Rs 45 billion more. It should be stated earlier this month, in an analyst presentation, DLF had confirmed that it had net debt of Rs 139.58 billion at the end of March.

DLF is India’s largest real estate company in terms of revenues, earnings, market capitalization and developable area. In line with its current expansion plans, DLF has over 425 million sq. ft. of development across its businesses, including developed, on-going and planned projects. This land bank is spread over 32 cities, mostly in metros and key urban areas across India. Already a major player in locations across the country, DLF, with over six decades of experience, is capitalizing on emerging market opportunities to deliver high-end facilities and projects to its wide base of customers by constantly upgrading its internal skills and resource capabilities.

DLF even considered to pay back Rs 75 billion by selling non-core assets like its wind power unit and from part collection of the money owed to it by a property trust, DLF Assets Ltd. A sum of $783 million was raised on Wednesday by DLF’s founders, K.P. Singh and family, with the main aim to inject capital into the property trust, which owes DLF Rs 49 billion.

There is no doubt in it that amid a property market downturn, DLF has been affected unfavorably by high debt and declining profits.