DLF to sell Amanresorts for US$ 300 million

DLF to sell Amanresorts for US$ 300 millionIndia's biggest property developer, DLF has said that it has agreed to sell its premium hotel chain Amanresorts in a management buy-out deal valued at US$ 300 million or about Rs 1,600 crore.

DLF Global Hospitality Ltd, which is a wholly owned subsidiary of DLF, has entered into a definitive agreement under which Adrian Zecha, the founder and Chairman of the Amanresorts Group of luxury resorts will acquire DGHL's 100 per cent shareholding in Silverlink Resorts Ltd, the company that owns Amanresorts. The Management Buy-Out agreement is expected to be completed by February depending upon usual conditions.

Amanresorts runs 22 hotels in 12 countries and it has been available for sale from two years. Saurabh Chawla, Executive Director of DLF pointed out that the flagship New Delhi hotel will not be a part of the sale. He said that the money raised by the sale would be mainly used to reduce debt.

DLF currently has debt of about Rs 23,200 crore and is looking to sell its non-core assets in order to reduce the level of debt and strengthen its balance sheet position. Following the funds coming from Lodha Developers for the mill land transaction in October helped the company reduce its dent for Rs. 21,220 crore.