DLF targets new sales booking of more than 50% in FY’14

Realty major DLF Ltd today said it is targeting more than 50 per cent jump in new sales booking to Rs 6,000 crore in the 2013-14 fiscal.

The company said it will invest Rs 3,000-3,200 crore on construction of various projects this year.

DLF Ltd, the country’s largest listed developer, said it aims to bring down net debt to Rs 19,000 crore by June, and reduce it further to Rs 17,000 crore by end of this fiscal.

“We are targeting sales of about 8-10 million square feet (msf) this fiscal, at Rs 6,000 crore. Last year, we sold 7.23 msf, at Rs 3,900 crore,” DLF Ltd Chief Financial Officer Ashok Tyagi told PTI.

Asked how it plans to bring down the company’s net debt, Tyagi said: “We are aiming to reduce our debt to Rs 19,000 crore by June with the help of funds raised from the recently concluded Institutional Placement Programme (IPP).”

DLF has raised Rs 1,863 crore through the issue of over 8.1 crore fresh shares to institutional investors, enabling it to dilute promoters stake to 75 per cent in line with market regulator Sebi’s minimum public shareholding norms.

The company said it will focus on bringing down the debt level by 50 per cent in the next three years and see free-cash flow remains positive by 2014-15 fiscal.

Its net debt as on March 31, 2013 was Rs 21,731 crore and average cost of debt has reached 12.8 per cent, it said.

On progress made on sale of its luxury hotel chain Amanresorts to reduce its debt level, Tyagi said: “We hope that the deal will be concluded by June.”

In December 2012, DLF had signed an agreement for effecting sale of Amanresorts to the hospitality property’s founder and Chairman Adrian Zecha for over Rs 1,600 crore. The deadline for the closure of the deal was February but it has been extended to June this year.

“We will speak to them (Adrian Zecha) and find out if they have arranged funds. If they are in the process, we could think of giving more time. If they are not, then we will take decision at that point of time,” Tyagi said.

On the Punjab and Haryana high court last week stayed the construction, sale and marketing of DLF’s Crest project in Gurgaon, the company said: “We are trying to present the facts and hope to resolve this issue at the earliest.”

DLF said its new residential project ‘Camellia’ in Gurgoan will be formally launched in the next two months.


Residents approach authorities over liquor vend on green belt

Residents of G Block in DLF City Phase 1, led by the area councillor, have urged the financial commissioner and principal secretary of the Haryana government for removing a liquor vend near the block’s green belt. They had shot off a letter to the authorities on May 13.

“Residents of G Block and nearby areas want the liquor vend on the green belt of the Gurgaon-Faridabad expressway removed. The vend near the MG/Golf Course Link Road has been running since April. We have already submitted a memorandum to deputy commissioner PC Meena, but no action has been taken against it so far,” said Rama Rani Rathee, councillor, Municipal Corporation of Gurgaon (MCG).

The residents are opposed to the vend as a playschool is situated less than 100 metres away. At night, this vend becomes a full-fledged bar, with additional seating arrangements on the green belt and kiosks selling eatables. It poses a security threat to residents.

“Some residents asked liquor vendor Vijender Yadav with whose permission he had set up the shop. He said he had acquired the shop through an auction and if the government asked him to move the shop, he would,” said GB Singh, a resident.

The Punjab and Haryana HC had passed an order dated January 30, 2009, saying, “The green belt shall not be put to any other use by the director except where any statutory authority like the NHAI decides to utilise and earmark the green belt and spaces along the road for widening of such roads.”


DLF sells 32 Acre plot in Hyderabad for about Rs 650 crore

Realty major DLF has sold 32 acre of land in Hyderabad for about Rs 650 crore to Suvarnabhoomi Developers as part of its strategy to exit from the non-core assets and reduce debt.

The company has signed an agreement with local builder Suvarnabhoomi Developers to sell this plot, sources said.

DLF has been divesting its non-core assets such as hotel plots, IT parks and SEZs since 2010 and had raised about Rs 8,000 crore till December last year.

Recently, the company has been able to divest its three big-ticket assets - prime land parcel in Mumbai, hospitality chain Amanresorts and wind energy projects.

DLF sold a 17-acre land in Mumbai to Lodha Developers for Rs 2,727 crore in August last year. The realty major also sold Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore in December 2012. Another Rs 523 crore has been raised this year from sale of wind mills in Gujarat, Tamil Nadu and Rajasthan.

The country’s largest realty firm is targeting to bring down the net debt to Rs 10,000-11,000 crore from Rs 21,350 crore within the next three years with the help of proceeds from the issue of shares and sale of non-core assets.

On May 14, DLF will launch Institutional Placement Programme (IPP) to raise up to Rs 1,888 crore from issue of 8.1 crore equity shares.

The share sale is for meeting market regulator SEBI’s guidelines on minimum 25 per cent public shareholding by June. Promoters hold 78.58 per cent stake in the company as of now.

The floor price of the issue has been fixed at Rs 222 per equity share with a price band of Rs 222-233 per share.

This will be the third major fund raising exercise in the company. DLF had launched its Initial Public Offer (IPO) to raise over Rs 9,000 crore in 2007, while the promoters had sold 9.9 per cent stake in 2009 to raise Rs 3,860 crore.

As per the IPP prospectus filed with SEBI, the company has developed 105 realty projects comprising 262.4 million sq ft till last year.

The company is constructing 34 projects with 46.1 million sq ft of saleable area and 5.8 million sq ft of leasable area and plans to launch 7 projects with 11 million sq ft of saleable area and 0.2 million sq ft of leasable area.

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