Hit by a sharp decline in office space demand, the country's largest realty player DLF expects revenues from DLF Assets -- its commercial projects acquisition arm -- to be significantly lower in several following quarters.
DLF Assets (DAL), which has been set up to handle commercial projects of the real estate major, owes DLF about Rs 4,800 crore and the parent firm is expecting over Rs 5,000 crore by the end of this financial year.
"Due to a sharp reduction in demand for leased office space, the balance delivery in DAL will be substantially delayed and accordingly the revenues accruing to DLF from the sale of DAL will not be significant at least for the next several quarters," DLF said.
DLF had reported a 69 per cent dip in net profit for the third quarter this financial year at Rs 670.79 crore.
However, while declaring the Q2 results of the company, Vice-Chairman Rajiv Singh had said: "If all go well, we can expect to receive in excess of Rs 5,000 crore by the end of this financial year for assets from DAL in some mixture of debt and equity."
At present, DAL is expecting to close a financial deal with private equity players for raising capital.
"DAL has received a serious level of interest from large private equity investors and (it) expects to close this transaction soon, possibly within this financial year itself," DLF said.
It is to be noted that DAL had deferred its plan to raise about two billion dollars from an IPO in Singapore, but has managed to raise over one billion dollars so far from private equity to purchase properties from DLF.
