DLF Sells 28-Acre Plot in Gurgaon for . 440cr to Cut Debt

Sale to M3M first among many deals planned


DLF has sold a 28-acre plot in Gurgaon to developer M3M India for . 440 crore, in the first among many such big-ticket sales it has lined up this fiscal to bring down mounting debt.
At least two persons involved in the deal said the plot in Gurgaon has all approvals and permission for a group housing project. M3M, which beat Tata Realty and Mahindra in the race for the land, has already paid around . 150 crore to DLF. The balance will be paid within a month. The source said M3M is financing this buy though internal accruals.
A spokesperson for DLF declined to comment on the deal. But a senior company executive, who refused to be named, confirmed the deal was sealed on Thursday. A spokesperson for M3M said the company had been talking to DLF to buy the land, but did not confirm if the deal had been closed.
India’s biggest real estate company has been trying to sell a bunch of non-core assets that includes land parcels, special economic zones and IT parks, and its Aman Hotels chain, barring the marquee hotel in central Delhi, to raise around . 7,000 crore over the next two years. The proceeds will be used to reduce the company’s mounting debt, which stood at . 21,524 crore as on June 30, 2011. Rising interest rates have made debt reduction more difficult.
In the quarter ended June, the company stepped up efforts to sell non-core assets, and was able to raise . 165 crore by selling smaller assets.
In a recent analyst call, the company’s executive director, Saurabh Chawla, said DLF will close two noncore asset sale deals within this quarter.
Share sale in one IT park in Noida and one SEZ in Pune, in which it has joint venture partners, is also expected to close this year. The combined sale by DLF and co-promoters is expected to generate . 1,300 crore. Blackstone is the likely buyer of the IT SEZ in Pune for . 900 crore while a private equity fund is close to sealing the deal for the Noida IT Park for . 400 crore. The company is also trying to sell anumber of land parcels in Hyderabad, Kolkata and Chennai.
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  • Sounds like another M3M project of 6400-6700 psft price range in the making.
  • Rightly said!! looks like another 'Merlin or Golf Estate' under planning.
  • I think this is in sector 70A

    Its a great news...if M3M comes here. This part of the SPR will also get attention like GCX....

    Tata, Unitech and DLF are already there in sectors 72, 69-70 and 73 respectively...

    Good news for my Southpark investment on SPR :)
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  • DLF and Omaxe are selling tranches of land directly... Whats the plan of other builders who are also hugely debt-ridden?

    Do we expect to see more plot launches from Unitech, Vatika, ANsals etc?
  • Yes appears to be 70A

    ET had earlier hinted about this sale. Interestingly, 28acres at 440 crores translates into 32.5K per yard.

    DLF to sell 13-acre Gurgaon plot for Rs 300 crore to ease debt burden - Economic Times

    DLF to sell 13-acre Gurgaon plot for Rs 300 crore to ease debt burden
    Ravi Teja Sharma, ET Bureau Aug 19, 2011, 08.06am IST
    Rajeev Talwar|Goldman Sachs
    NEW DELHI: India's largest developer DLF is selling a 13-acre plot in Gurgaon, Haryana, as part of its plan to ease its debt burden through asset sales. About 1 million sq ft of commercial space can be built on the plot, which is expected to fetch Rs 300 crore for the realty firm.

    A person close to the situation said that DLF is talking to a few large corporates and a high net worth individual. DLF is asking for a price of Rs 2,800-3,000 per sq ft, he said. The land is close to the new southern peripheral road in Gurgaon, which will connect national highway 8 with MG Road.

    "We do not comment on market speculation," said Rajeev Talwar, group executive director at DLF, said. ET had reported some time ago that DLF is also in the process of selling a 27.4 acre plot of residential land in sector 70A of Gurgaon for Rs 400 crore.