ET Bureau NEW DELHI: India’s largest real estate firm DLF is expecting to receive expressions of interest from prospective investors for the sale of its promoters’ 40% stake in the company’s rental arm DLF Cyber City Developers (DCCDL) over the next two weeks.
It plans to finalise the buyer over the next two months and close the transaction latest by the end of the current financial. It had circulated the information memorandum to potential investors in April.
DLF had said in October last year that its promoters would sell their 40% stake in the company’s rental arm, which is expected to fetch around Rs 12,000-14,000 crore and of this, they would reinvest a substantial sum back into the company after paying tax and other charges.
Global investors such as Blackstone, Brookfield Asset Management, Temasek, GIC, Canada Pension Plan Investment Board, Warburg Pincus and a consortium of West Asian sovereign funds Abu Dhabi Investment Authority and Qatar Investment Authority, along with Kotak Realty Fund are expected to show interest in buying the stake.
In a call with analyst, DLF’s CFO Ashok Tyagi said while residential sales were still slow, commercial leasing activity was the bright spot for DLF. The company achieved net leasing of 1.02 million sq ft of office space during FY16 while gross leasing was at 3.56 million sq ft as about 2.54 million sq ft of lease expired during the year and was renewed at a high rental. "Since most of the office stock in Cyber City has been absorbed, the company has started construction of a new project: Cyber Park, with an approximate size of 2.2 msf (including TOD),” the company said.
DLF's net debt, however, rose by Rs791crore during the year to Rs 22,202 crore compared withRs21,411 crore at the end of the December 2015 quarter. This includes Rs 430 crore that was paid as interim dividend for FY 2016. The company has maintained its guidance for FY17 as well. It expects to clock Rs 3,000-3,500 crore in residential sales in the current fiscal whole, achieving a net pre-leasing of office space of 1-1.5 million sq ft. In FY16, the company’s rental income grew to Rs 2,600 crore on the opening of the new 2 million sq ft mall in Noida and DLF expects this number to rise to Rs 3,000 crore by the end of FY17 as it targets a soft launch for its new luxury mall at Chanakyapuri in New Delhi in Q4 FY17.
For the quarter ended March 2016, DLF reported a 23% drop in its consolidated net profit at Rs 132 crore compared with a net profit of Rs 172 crore in the same quarter last year.
It plans to finalise the buyer over the next two months and close the transaction latest by the end of the current financial. It had circulated the information memorandum to potential investors in April.
DLF had said in October last year that its promoters would sell their 40% stake in the company’s rental arm, which is expected to fetch around Rs 12,000-14,000 crore and of this, they would reinvest a substantial sum back into the company after paying tax and other charges.
Global investors such as Blackstone, Brookfield Asset Management, Temasek, GIC, Canada Pension Plan Investment Board, Warburg Pincus and a consortium of West Asian sovereign funds Abu Dhabi Investment Authority and Qatar Investment Authority, along with Kotak Realty Fund are expected to show interest in buying the stake.
In a call with analyst, DLF’s CFO Ashok Tyagi said while residential sales were still slow, commercial leasing activity was the bright spot for DLF. The company achieved net leasing of 1.02 million sq ft of office space during FY16 while gross leasing was at 3.56 million sq ft as about 2.54 million sq ft of lease expired during the year and was renewed at a high rental. "Since most of the office stock in Cyber City has been absorbed, the company has started construction of a new project: Cyber Park, with an approximate size of 2.2 msf (including TOD),” the company said.
DLF's net debt, however, rose by Rs791crore during the year to Rs 22,202 crore compared withRs21,411 crore at the end of the December 2015 quarter. This includes Rs 430 crore that was paid as interim dividend for FY 2016. The company has maintained its guidance for FY17 as well. It expects to clock Rs 3,000-3,500 crore in residential sales in the current fiscal whole, achieving a net pre-leasing of office space of 1-1.5 million sq ft. In FY16, the company’s rental income grew to Rs 2,600 crore on the opening of the new 2 million sq ft mall in Noida and DLF expects this number to rise to Rs 3,000 crore by the end of FY17 as it targets a soft launch for its new luxury mall at Chanakyapuri in New Delhi in Q4 FY17.
For the quarter ended March 2016, DLF reported a 23% drop in its consolidated net profit at Rs 132 crore compared with a net profit of Rs 172 crore in the same quarter last year.
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Read More News on
(Your legal guide on estate planning, inheritance, will and more.)
Download The Economic Times News App to get Daily Market Updates & Live Business News.
Get Unlimited Access to The Economic Times
