DLF, the country’s largest property developer, plans to book nearly Rs 2,000 crore revenue from sale of 4.5 million square feet of commercial space to the group company, DLF Assets Ltd (DAL), by next month, according to a company executive.
The company would also book Rs 3,500 crore revenue from sale of 3.5 million sq ft space expected to be delivered to DAL, a holding company promoted by DLF’s KP Singh and family, in the next 12-18 months, the executive said.
The company has already booked Rs 5,450 crore revenue from sale of 5 million sq ft it has sold to DAL. It is, however, yet to receive the same. In a bid to pay DLF, the group’s arm, DAL, plans to raise Rs 2,000 crore through lease rental discounting, analysts say.
Simultaneously, DLF was expected to use around Rs 1,300 crore to buy a minority stake in DAL in a bid to help DE Shaw, a hedge fund that had invested $400 million (approximately Rs 2,000 crore) in DAL in 2007, exit the company, analysts said.
DLF today clarified to the exchanges that it had been looking at various options from time to time but no definite option had been presented to the board so far for its consideration.
However, a report from ICICI Securities today said DLF might need Rs 2,700 crore additional capital in the next two years to meet its cashflow requirements as its ability to generate cash from group company DAL remained under pressure.
