DLF in talks with PEs to sell Aman Resorts

DLF, India’s largest real estate company, had initiated talks with four buyers, including leading private equity (PE) funds, for the sale of Aman Resorts, its luxury hotels chain, said a source involved in the deal.

In December 2012, DLF had announced it had sold the entire stake in Aman Resorts for $300 million to Adrian Zecha, the hotel chain’s founder. Sources said Zecha had missed two payment deadlines in March and June, adding he wasn’t able to raise funds for the deal.

“Adrian is still in the fray. Being a management buy-out, it is taking time to close. In the meantime, they (DLF) are also in discussions with four other buyers, including some global PE funds that are in various stages of evaluation and diligence,” the sources said. “They are not banking on one buyer for the sale. That is why they’re talking to three-four companies.”

 

 

TZecha couldn’t be contacted for comment. DLF executives declined to comment.

The sale of Aman Resorts is vital to DLF’s plan to sell its non-core assets to reduce debt. The company, which had net debt of Rs 21,731 crore as of March, is selling land parcels, its insurance venture and its wind energy business, apart of its hotels venture, to reduce debt to about Rs 17,000 crore by the end of this financial year.

On Thursday, the company announced the sale of 74 per cent stake in its life insurance venture DLF Pramerica Life insurance to Dewan Housing Finance. Recently, it had sold a 350-Mw wind turbine project in Gujarat to Bharat Light and Power.