DLF, India's largest real estate developer, is selling a 30-acre land parcel in Hyderabad's Raidurg area to local builder My Home Group for Rs 550 crore, two people with knowledge of the development said.
The transaction will be completed in the next one month and DLF will use the money to reduce its debt further, one of the persons said. DLF has pared its debt toRs 18,500 crore from over Rs 23,000 crore a few years ago, but it hopes to bring this down further to Rs 17,500 crore by the end of the current fiscal.
A spokesman for DLF said the company did not comment on market speculation. A spokesman for My Home Group said the company did not want to respond to any market rumour on the matter.
The transaction will be completed in the next one month and DLF will use the money to reduce its debt further, one of the persons said. DLF has pared its debt toRs 18,500 crore from over Rs 23,000 crore a few years ago, but it hopes to bring this down further to Rs 17,500 crore by the end of the current fiscal.
A spokesman for DLF said the company did not comment on market speculation. A spokesman for My Home Group said the company did not want to respond to any market rumour on the matter.
DLF was unable to develop the land because it fell under the Archaeological Survey of India's heritage zone where no construction was allowed. The land was dotted with several large rocks that were meant to be preserved, so no construction was allowed near them.
DLF has about 25 million sq ft of leased office space spread across Gurgaon, Hyderabad, Kolkata, Chandigarh and Chennai, which generates a rental of about Rs 1,950 crore every year and supports Rs 12,000 crore of the company's debt.
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