DLF sells Aman Resorts for Rs2,200 crore to pare debt

DLF Ltd has sold Aman Resorts to a company owned jointly by Aman Resorts founder Adrian Zecha and US-based investor Peak Hotels & Resorts Group Ltd (ARGL), for $358 million (around Rs2,200 crore), in a bid to pare its debt.

DLF would also sell 100-per cent stake in Silverlink Resorts Ltd, the holding company for Aman Resorts, to ARGL as part of the deal.

ARGL will be majority owned by Peak Resorts and the deal excludes the Lodhi Hotel in Delhi, which would remain a part of DLF, the New Delhi-based company said.

The deal will help India's largest real estate company cut down its mountain of debt. DLF, which has been selling its non-core assets to pare debt, had been looking for a buyer for Aman for some time now.

DLF had bought a 97-per cent stake in Aman Resorts for $400 million in 2007, which it subsequently raised to 100 per cent.

"This sale of business is another major milestone in DLF's strategy to focus on its core business of real estate and divest noncore businesses and assets," said Saurabh Chawla, DLF's executive director in charge of finance.

Aman Resorts currently owns and manages 26 small luxury resorts and hotels in 18 countries, including Thailand, China, Bhutan, France, Sri Lanka, the US and Greece.

Amanat Trading, the founder of Tradescape and a pioneer in the electronic brokerage industry, has stakes in entertainment and other businesses.

Adrian Zecha is an Indonesian hotelier is the founder of Aman Resorts and co-founder of Regent International Hotels.

The sale is part of DLF's effort to bring down its debt to Rs17,500 crore at the end of the current fiscal from Rs21,731 crore at the end of the last financial year.

DLF's total debt stood at Rs20,369 at the end of June 2013.