DLF Ltd, India’s largest real estate developer, is selling a piece of land in Goa for around ₹250 crores as part of its strategy to divest non-core assets and raise funds to pare debt.
“The existing land parcel is among the last in our list of non-core assets. We are looking forward to new launches in the state (Goa) as per our business plan,” a company spokesperson said. DLF did not disclose the name of the buyer.
DLF purchased the land more than a decade ago to develop a hotel project. It has three land parcels in Goa, which were acquired in the late 2000s to be developed into residential, retail and hotel projects. However, a couple of them faced issues such as procuring environment clearances and are still to be developed.
Since 2012, DLF has gradually sold most hospitality ventures, other non-core businesses and land to reduce debt and focus on its core commercial office and residential development business. In the process, it also exited several property markets to focus on Gurugram and a few other cities such as Chennai.
On the hospitality front, DLF earlier sold Aman Resorts to Aman Resorts Group Ltd for $358 million. It also divested its stake in Adone Hotels and Hospitality to a Kolkata-based consortium Avani Projects and Square Four Housing and Infrastructure for ₹567 crore in June 2012.
DLF pared its debt in the December quarter to ₹5,100 crore from ₹5,215 crore in the preceding quarter.
Meanwhile, the widespread disruptions caused by covid has led DLF to change its strategy of selling residential properties only after they are constructed. In a post-earnings call last week, the management said most projects will now be offered to buyers after the start of construction.
