DLF may sell Delhi hotel for Rs 55 cr
The Economic Times, April 9, 2009, page 6
Sanjeev Choudhary NEW DELHI
COUNTRY’S largest realty company DLF has entered into an agreement with an unidentified wealthy individual to sell its 60-room hotel at Saket in New Delhi for around Rs 55 crore, people familiar with the development said. The move is part of company’s effort to generate cash through asset sale to support other ongoing projects. The hotel, located adjacent to DLF’s South Court mall, is built on the land purchased from DDA. The super structure of the hotel is ready and expected to be operational by July.
A DLF spokesman denied that the firm had sold the property, but two people familiar with the development said DLF had already received the token amount — around 10% of the total value— from the buyer. They didn’t identify the buyer, but said he was a businessman with no presence in hotel industry. Recently, Unitech, too, reportedly sold off its 198-room Gurgaon hotel for around Rs 230 crore to a wealthy individual- Tata Motors dealer Roop Madan. Unitech is also looking for buyers for its other hotel and serviced apartment projects.
Several realty companies are in deep distress due to a global economic meltdown and a slump in the domestic real estate sector. Many real estate companies have put off their hotel plans and have been desperately looking for buyers for their hotel projects.
DLF too has scaled back its hotel plans and is selling its smaller hotel or land parcels meant for hotels in several cities across the country. Even though it has been able to raise substantial debt recently, largely to replace short-term loans with long-term debt, DLF needs to arrange large amount of cash to fund its ongoing projects and fuel expansion. Country’s largest developer is facing cash crunch mainly on account of the inability of the promoter group company DLF Assets (DAL) to pay for the properties it purchased from DLF. The receivables from DAL had risen to Rs 5,400 crore as of December ‘08.
The Economic Times, April 9, 2009, page 6
Sanjeev Choudhary NEW DELHI
COUNTRY’S largest realty company DLF has entered into an agreement with an unidentified wealthy individual to sell its 60-room hotel at Saket in New Delhi for around Rs 55 crore, people familiar with the development said. The move is part of company’s effort to generate cash through asset sale to support other ongoing projects. The hotel, located adjacent to DLF’s South Court mall, is built on the land purchased from DDA. The super structure of the hotel is ready and expected to be operational by July.
A DLF spokesman denied that the firm had sold the property, but two people familiar with the development said DLF had already received the token amount — around 10% of the total value— from the buyer. They didn’t identify the buyer, but said he was a businessman with no presence in hotel industry. Recently, Unitech, too, reportedly sold off its 198-room Gurgaon hotel for around Rs 230 crore to a wealthy individual- Tata Motors dealer Roop Madan. Unitech is also looking for buyers for its other hotel and serviced apartment projects.
Several realty companies are in deep distress due to a global economic meltdown and a slump in the domestic real estate sector. Many real estate companies have put off their hotel plans and have been desperately looking for buyers for their hotel projects.
DLF too has scaled back its hotel plans and is selling its smaller hotel or land parcels meant for hotels in several cities across the country. Even though it has been able to raise substantial debt recently, largely to replace short-term loans with long-term debt, DLF needs to arrange large amount of cash to fund its ongoing projects and fuel expansion. Country’s largest developer is facing cash crunch mainly on account of the inability of the promoter group company DLF Assets (DAL) to pay for the properties it purchased from DLF. The receivables from DAL had risen to Rs 5,400 crore as of December ‘08.
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