Realty major DLF Ltd said the deadline to sell a 40% stake by its promoters in the group's commercial rental properties to some third-party institutional investors has been extended for the second time by a year.
The proposed stake sale in DLF Cyber City Developers Ltd (DCCDL) is now expected to happen by 18 March 2018, the developer said in a stock market disclosure without citing reasons for the deadline extension.
KP Singh and family, who control DLF, had planned in 2015 to sell 159.7 million cumulative compulsorily convertible preference shares (CCPS) or a 40% stake in the group's commercial rental properties initially by March 2016. Last year too, the real estate developer had extended the deadline without specifying any reason for the extension.
"The rental portfolio (DCCDL) showed a significant growth, helped by anticipated volume growth and mark-to-market reset of rentals in case of properties whose original lease term expired or where there was a churn in tenants," DLF noted in its annual report for 2016.
DLF is looking at a valuation of Rs 12,000-14,000 crore for the 40% stake in DCCDL, in which DLF will own the remaining 60% stake. It aims to put back proceeds from the stake sale into the parent company to cut debt.
The realty major has tried a slew of measures including divestment of non-core assets and land parcels and restructuring to reduce its debt. It had a net debt of Rs 22,202 crore as of 31 March 2016.
Last year, DLF Ltd said it has restructured a joint venture with Ridgewood Holdings Ltd that was to develop seven residential projects across Bangalore, Chennai, Kochi and Indore.
The developer had earlier tried to mark its presence across India but has lately backtracked and is now focusing on its core market of Delhi-NCR. Given the slowdown in the real estate market, especially in NCR, it has shied away from launching new residential projects and is trying to finish the existing ones.
Meanwhile, DLF reported a 46% year-on-year drop in its consolidated net profit at Rs 98.14 crore for the October-December quarter. Its total income decreased to Rs 2,177.9 crore during the quarter from Rs 3,109.6 crore in the same period last year.
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