DLF sells 17.5 acre NTC land to Lodha developers
According to several reports in the media, India's infrastructure major, DLF has sold 17.5 acre NTC land to Lodha developers under a deal valued at about Rs 2750 crore.
The largest real-estate developer sold the plot located at Lower Parel in Mumbai to Lodha Developers for Rs 2,750 crore. The company made a profit of Rs 2,000 crore over seven years through the sale of land in the country's financial capital.
A report in the Economic Times cited two people familiar with the matter to say that the two companies have already signed the binding agreement on Saturday. Lodha Developers is expected to pay first instalment of Rs 500 crore on August 13 and final payment of Rs 2,250 crore in October, according to the report.
The company tool huge debt during 2007-08 property boom period, when the funds were available at cheap rates, in order to fund its expansion plans for millions of square feet of homes. The company is now trying to reduce its debt, which stood at Rs 22,700 crore as of March.
The company is aiming to reduce debt and improve profitability. The company is facing a slow demand as customers face high interest rates and inflationary pressures in the economy. DLF has already sold Rs 1,770 crore worth of non-core assets compared to a target of Rs 5,000-6,000 crore. It sold just Rs 370 crore worth of non-core assets during the first quarter against a new target of Rs 10,000 crore worth of disinvestment during the medium term.
The shares of the company rose 1.64 per cent and were trading at Rs 213.70 on the Bombay Stock Exchange (BSE) on Monday morning at the time of reporting. The shares have touched a high of Rs 214.45 and low of Rs 210.25 so far and 97,050 scrip have exchanged hands on the BSE.
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