DLF sells hotel arm for Rs 567 cr to cut mammoth debt
Debt-ridden DLF today said it has sold its entire stake in its subsidiary Adone Hotels and Hospitality to a Kolkata-based consortium Avani Projects and Square Four Housing & Infrastructure for Rs 567 crore.
The realty giant is trying hard to reduce its mounting debt, which stood at Rs 22,725 crore as on March 31, 2012. It could manage to reduce debt by a meagre Rs 33 crore in January-March quarter this year.
"The company's wholly-owned subsidiary, DLF Hotel Holdings Ltd, has divested its entire shareholding in Adone Hotels and Hospitality Ltd (Adone) for Rs 567 crore," DLF said in a statement.
Adone's properties, which include land parcels in Chennai, Mysore, Kolkata and Thiruvananthapuram for hotel developments, were sold to a consortium of Avani Projects and Square Four Housing & Infrastructure Pvt Ltd, it added.
"As a result, Adone and its wholly owned subsidiary, Marla Real Estate Pvt Ltd, have ceased to exist as subsidiaries of the company (DLF)," the statement said.
DLF Hotel Holdings was started as a joint venture with hospitality chain Hilton International. In December 2011, DLF had bought out 26% stake of Hilton JV.
The company said the sale of the shareholding was done in line with DLF's stated objective of divesting its non-strategic assets, the company said.
DLF has raised about Rs 1,774 crore in last fiscal through divestments of non-core assets, including plots and IT parks. The divestments proceeds has reached Rs 4,844 crore till date.
The overall target of divestment of non-core assets of Rs 10,000 crore would be achieved in the medium term.