DLF, India’s largest real estate company, is in talks with IDFC to sell the entire 70% stake it holds in DLF IT Park, Noida. The move is part of the company’s strategy to exit non-core areas and reduce debt. Though the exact valuation of the venture could not be ascertained, sources close to the development said DLF is looking to raise around R950 crore through the sale.
With this sale, IDFC will get full control over the park. This is because DLF’s 30% partner in the venture, another real estate firm 3C, has also decided to sell out.
The DLF spokesperson refused to speak on this. “The company does not respond to market speculation,” the company spokesperson said.
The DLF IT Park in Noida has a total of 1.3 million sq ft space with Computer Sciences Corporation as the marquee tenant. The building is yet to reach full occupancy.
While announcing first-quarter earnings earlier this month, DLF had said that the company expected to finalise at least two big-ticket deals for sale of non-core assets and had expressed confidence that it would achieve the target of raising Rs.7,000 crore from sale of non-core assets in two to three years.
DLF Executive Director (Finance) Saurav Chawla had said: “We are now in an advanced stage of finalising at least two deals. We should close two deals within this quarter and some would flow in October.”
The sale of DLF’s Pune IT Park — which it has developed with another real estate firm Ackruti — is also in the works. DLF officials said the sale of the Pune IT Park will follow Noida’s IT Park’s sale.
As on June 30, 2011 DLF’s total debt stood at Rs.21,524 crore. It has so far realised a little over Rs.3,200 crore from sale of non-core assets that include hotel plots.
DLF reported a 12.81% decline in its consolidated net profit at Rs.358.36 crore during the first quarter ended June 30.
