DLF plans ‘value’ housing to expand market reach, unlock land banks
The Hindu Business Line, November 1, 2009, Page 3
Our Bureau, New Delhi
Real-estate major DLF Ltd plans to launch ‘Value’ housing projects under a distinct brand, joining the growing list of industry players that are eyeing the affordable housing segment to boost demand. The company will launch 3-4 million sq ft under this new category, which it has classified as a lower extension of premium housing. According to a presentation by the company to analysts, its value housing projects will come up in Chennai, Bangalore, Hyderabad, Chandigarh and Gurgaon. While the company has kept the pricing under wraps, industry sources said it could be in the range of Rs 1,700 per sq ft. However, this could not be independently confirmed with the company.
During the analyst call, DLF is learnt to have said that Value housing will enable it to expand its market reach. The company is eyeing margins of 25-30 per cent for this new product category, sources said, adding that it also saw this as a great way to unlock land parcels.
“We have significant land parcels available for value housing projects. We are not saying that value housing is not profitable for us… It will be an extension of premium housing segment,” the Vice-Chairman, Mr Rajiv Singh, said in a conference call to discuss July-September results.
According to the analyst presentation, its net debt stood at Rs 12,135 crore (Rs 11,686 crore). Outlining its debt de-leveraging plan, the company said it had already received Rs 1,064 crore in Q1 and Q2 from unlocking non-core assets, and another Rs 4,436 crore was expected through similar action during the remainder of the year. It is also expecting Rs 1,000 crore operational surplus during the second half of the current fiscal and Rs 500 crore from DLF Assets Ltd in FY10. These would combine to bring down the net debt to Rs 6,199 crore, the company said.
The Hindu Business Line, November 1, 2009, Page 3
Our Bureau, New Delhi
Real-estate major DLF Ltd plans to launch ‘Value’ housing projects under a distinct brand, joining the growing list of industry players that are eyeing the affordable housing segment to boost demand. The company will launch 3-4 million sq ft under this new category, which it has classified as a lower extension of premium housing. According to a presentation by the company to analysts, its value housing projects will come up in Chennai, Bangalore, Hyderabad, Chandigarh and Gurgaon. While the company has kept the pricing under wraps, industry sources said it could be in the range of Rs 1,700 per sq ft. However, this could not be independently confirmed with the company.
During the analyst call, DLF is learnt to have said that Value housing will enable it to expand its market reach. The company is eyeing margins of 25-30 per cent for this new product category, sources said, adding that it also saw this as a great way to unlock land parcels.
“We have significant land parcels available for value housing projects. We are not saying that value housing is not profitable for us… It will be an extension of premium housing segment,” the Vice-Chairman, Mr Rajiv Singh, said in a conference call to discuss July-September results.
According to the analyst presentation, its net debt stood at Rs 12,135 crore (Rs 11,686 crore). Outlining its debt de-leveraging plan, the company said it had already received Rs 1,064 crore in Q1 and Q2 from unlocking non-core assets, and another Rs 4,436 crore was expected through similar action during the remainder of the year. It is also expecting Rs 1,000 crore operational surplus during the second half of the current fiscal and Rs 500 crore from DLF Assets Ltd in FY10. These would combine to bring down the net debt to Rs 6,199 crore, the company said.
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