DLF Sells Commercial Property for Dollar 103M to Kolkata Based Consortium
DLF Group has sold its commercial property in Kolkata to Avani Projects and Square Four Housing & Infrastructure based in Kolkata. DLF, the most biggest and established realtor in keeping with market capitalisation has finally managed to dump its hotel land parcels to a consortium of developers from Kolkata for Rs 567 crore. The consortium, as well as Avani Projects and Square Four Housing & Infrastructure Pvt Ltd. was in negotiations with DLF since last December to accumulate the land parcels totalling seventeen acre and unfold across four cities.
DLF these days announced to the stock exchange that the company’s wholly owned subsidiary, DLF Hotel Holdings Ltd, deprive its entire shareholding in Adone Hotels and Hospitality Ltd. the company holds the land parcels for Rs 567 crore. In accordance to Adone and its completely mastered subsidiary, Marala Real Estate Pvt Ltd, to be a subsidiary of DLF.
The transaction of Rs 567 crore could be a drop within the ocean for the realtor that has been sitting on a debt pile of Rs 22,725 crore. The company’s gross debt at the end of the March quarter was Rs 24,238 crore.
According to the corporate the sale was exhausted line with DLF’s stated objective of divesting its non‐strategic portion. Adone holds land parcels in Kolkata, Thiruvananthapuram, Mysore and Chennai for hotel developments, together with different portion. The full landholding across these four parcels amounts to 17.14 acres . DLF Hotel Holdings was started as a joint venture with the leading hospitality chain Hilton International. However in December 2011, DLF had bought out its foreign partner’s twenty six percent stake.
DLF was trying to make a luxury hotel and retail venture at E.M. Bypass, the upcoming hub of Kolkata property market, where the market worth is around Rs 4500 per sq. ft. translating an acre acquisition value at Rs 55-60 crore. The native players from Kolkata can develop a hotel and serviced flats on the land it's acquired from the debt-laden developer.
Taking the reported deal at face worth, valuation works out to be Rs 33.1 crore per acre that is very high considering that each one the land parcels are in tier II and tier III cities. Hence, we have a tendency to don't rule out the presence of great money sitting within the subsidiary and await clarity on DLF Hotels & Hospitality balance sheet. The native developers are returning in and that they are changing the merchandise combine consistent with the viability of the merchandise.
DLF stock closed at Rs 197.55 a share up 2.20 per cent on the BSE. Though its shares are moving upwards, the key pointer still happens to be liability reduction through major commercial property in Kolkata for sales. These embody Aman Resorts, that DLF had acquired for a whopping $400 million in 2007 and therefore the Bombay Mills property located in Lower Parel that it had acquired for Rs 702 crore in 2007 in an aggressive bidding from National textile Mills Corporation (NTC). The corporate is additionally attempting to dump its windmill property, that was once placed on block in 2008. The windmill property provides tax concessions to the developers. DLF wanting to get near Rs 5,000 crore within the medium term from these property however transactions are happening at snail’s pace.
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