DLF expects to pare its debt burden of over Rs 22,500 crore to less than half in the next two years. As part of the strategy to bring down its total debt to about Rs 10,000 crore by 2013, the firm is closing in on a few deals of to sell non-core assets, including Amanresorts. In the recent years, The company expects to raise about Rs 3,000 crore by March 2012 through sale of non-core assets such as IT Park in Noida, IT SEZ at Pune and hospitality business Amanresorts.
DLF is likely to generate Rs 1,800 crore-Rs 2,000 crore revenue in 2011-12 from rentals business that is growing 15 per cent every year. The company’s net debt rose by nearly Rs 1,000 crore in the quarter ended September 30 to Rs 22,519 crore from Rs 21,524 crore as on June 30, 2011. It went up mainly due to delay in receipt of payments from non-core asset sales. Earlier, the company had said it was targeting to bring the borrowings down to about Rs 19,000 crore by March 2012.
The country’s largest realty player DLF Ltd will invest up to Rs 3,000 crore over the next five years to develop shopping malls across India as it looks to cash in on opportunities following the further opening up of FDI in retail sector. The company will develop 3.5 million square feet to 4 million square feet of retail space as it expects heightened activity with the Government yesterday approving 51 per cent foreign direct investment in multi-brand retail and 100 per cent in single brand. While DLF Brands manages malls, another division of DLF Ltd constructs the malls. The company currently has about 10 operational malls across India.