DLF, India’s largest real estate developer, has decided to sell its prized asset -the 17.5-acre NTC Mill land in central Mumbai- which bankers estimate would fetch between Rs 3,000 crore and Rs 4,000 crore. This will make it one of the biggest land deals in the country. The company that bought the land for Rs 702.2 crore in 2005 has started the process of appointing investment bankers for the proposed transaction that is likely to complete in the current fiscal. More than four foreign investment bankers, including UBS, Morgan Stanley and Deutsche Bank, have already given presentations to the company. The appointment process is likely to complete by month end. The proposed fund-raising exercise through sale of assets is in line with annual target to raise Rs 7,000 crore through this route. The fund will be used to reduce its debt, which is slightly over Rs 21,000 crore.
Besides the prized Mumbai land, the company also aims to culminate two more transactions in the third quarter ending December 2011. These include the sale of iconic Aman Resorts barring Aman Hotel Delhi (formerly Lodhi Hotel) and will be able to bring in HCL group as strategic partner in its life insurance joint venture DLF Pramerica in which the US based Prudential International has 26% stake. The company will raise another Rs 800 crore by end of this month through sale of two assets — a 25 acres land in Gurgaon to M3M for Rs 440 crore and its 71% stake in an IT Park in Noida to IDFC Private Equity. It has already raised Rs 240 crore in the first quarter by selling small parcels of non-contiguous land.