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India property giant DLF sells land for nearly $500 mln

Business Week
India property giant DLF sells land for nearly $500 mln - DLF - India - property developer

NEW DELHI: India's biggest property developer DLF has sold a large parcel of land in commercial hub Mumbai for nearly $500 million, a statement said Monday, as it struggles to reduce its massive debt.

DLF sold 17 acres (6.9 hectares) of prime central city land to Lodha Developers for 27 billion rupees ($488 million), Lodha said in the statement.

"Lodha Developers has entered into a binding agreement to acquire DLF's wholly owned subsidiary Jwala Real Estate, which is the owner of the strategic 17-acre Mumbai textile mill property at Worli," privately held Lodha said.

New Delhi-based DLF, controlled by billionaire Kushal Pal Singh and his family, has been selling non-core assets as it battles to pare debts totalling 227 billion rupees ($4 billion) and reduce interest costs.

The Mumbai sale price was quadruple the amount DLF paid when it bought the property in 2005 -- reflecting soaring land costs in India's priciest real estate market.

Mumbai-based Lodha is the city's leading real estate developer.

The sale came after DLF earlier this month reported that quarterly net profit fell 18 percent to 2.9 billion rupees ($53 million) as sales slumped 10 percent to 22 billion rupees from a year earlier.


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