DLF is looking to raise Rs 2,000 crore through monetisation of certain commercial land parcels to its existing joint venture partners or new partners.
The monetisation of land parcels will help the company in reducing its net debt, which stood at Rs 4,866 crore at the end of Q3/FY20. The company intends to monetise select commercial land parcels through its existing joint venture arrangements and/or new alliances which has a potential to raise Rs 1,750 crore to Rs 2,000 crore.
DLF already has a joint venture (JV) with Singapore’s sovereign wealth fund GIC for rental business. Certain identified recoveries including from certain land entitlements of Rs 700 crore to Rs 800 crore to be transferred to the existing JV arrangements will further help in deleveraging.
DLF has a rental portfolio of about 36 million sq-ft, of which around 32 million sq ft is office space and the rest is retail properties. It earns an annual rental income of over Rs 3,000 crore from these leased assets.