DLF to sell stake in JV with Akruti

Real estate developer DLF Ltd is looking to raise Rs 300-500 crore by selling its stake in a joint venture with Mumbai-based realtor Akruti City for a commercial project in Andheri. A senior DLF official confirmed the company's plans but did not comment on the amount to be raised.

DLF has already scrapped a 5 star hotel project in Prabhadevi in Mumbai with Akruti due to less-than-expected demand. DLF was the majority stakeholder in the 66:34 commercial project. DLF has been looking to monetise its non-core assets to raise funds over the next one year to pay off its debt.

The company had net debt of Rs 13,958 crore, of which Rs 3,591 crore is due for repayment this fiscal. The developer has also put its wind power business on the block and is expecting to garner about Rs 900 crore from it.

DLF would reduce its outstanding debt by half this fiscal by raising about Rs 5,500 crore through assets sales, plot sales and cash flow from the business. To preserve cash, DLF has deferred development of capital-intensive properties, which include 20 million square feet of office space and 7 million square feet of retail space.