DLF to raise Rs1,800-crore through non-core asset sale: report

DLF Ltd, India's largest listed developer and the also country's largest real estate company, is in talks to sell some of its non-core assets worth Rs1,800 crore ($357 million), The Economic Times today reported.

The cash-strapped company, which had a debt of over Rs22,000 crore at the end of September, is hoping to raise Rs3,000 crore in the current fiscal and another Rs3,500 crore in 2012-13 by selling its non-core assets including its wind power business in the coming fiscal year from 1 April 2012, in order to reduce its huge debt.

Gurgaon-based DLF has started negotiations with investors to raise Rs1,000 crore by selling its wind power business, the paper said, citing an unnamed senior DLF executive.

DLF is also close to finalising a Rs8,000 joint venture agreement with an unnamed Japanese company for building its convention centre project in New Delhi, the paper said.

DLF has since 2009 been trying to sell some of its non-strategic assets including its wind power business, hotels and non-viable development projects in Karnataka, West Bengal and Delhi.

DLF had created a separate subsidiary called DLF Wind Power for its wind energy business as a precursor to the sale, and hopes to raise at least Rs1,000 crore from the sale, which is a steep loss after having invested around Rs1,500 crore in the business.