DLF, the country's
largest real estate developer, is close to sealing a roughly $450-million (Rs 2,483 crore) deal for the sale of Aman Resorts to a joint party which includes a US private equity company and a China-based hospitality chain.
The developments come at the back of DLF announcing on Monday the sale of
17.5 acre plot in Mumbai to Lodha Developers for Rs 2,750 crore.
According to a reliable source, "The deal (for Aman Resorts) is in the final stage of negotiations. The company has finally agreed to sell Aman Resorts for $450 million and the deal is expected to be closed by the end of this month."
China-based HNA Group, which has interests in tourism, transportation, financial services, real estate, airport and logistics, and the US-based private equity company are jointly negotiating the deal.
The Chinese company had earlier attempted to bid for the property. However, the plan did not materialise.
According to sources, the deal will include all the properties of Aman Resorts chain with the exception of Aman Hotel (earlier Lodi Hotel) property in New Delhi. DLF has decided to keep the Delhi property with itself.
DLF had acquired the hospitality chain in 2007 at $400 million.
However, due to mounting debt, the company decided to stick to its core business and sell off its non-core assest, including the hospitality chain and the wind power business.
The deal has been on the block for about two-and-a-half years. DLF wanted to sell the Aman Resorts chain for Rs 3,000 crore but was unable to get the expected price for the property.
Earlier, the realty giant was in talks with Malaysian-based company Khazanah, global fashion house LVMH, Four Seasons Hotel and Kingdom Holdings for selling the resort.
This potential deal is part of
DLF's plan to raise Rs 7,500 crore by March 2013 through the sale of non-core assets to reduce its huge debt burden, which has risen to Rs 22,860 crore.
In June, the company sold its entire stake in its subsidiary Adone Hotels and Hospitality to Kolkata-based consortium Avani Projects and Square Four Housing and Infrastructure for Rs 567 crore.
In a move to pare debts, DLF on Monday announced parting ways with its plot at Lower Parel with the deal including the land cost of Rs 1,200 crore and liabilities worth Rs 1,500 crore incurred by the real estate giant since it purchased the plot in 2005.
This decision of both the firms was finalised after the plans to jointly develop the plot went kaput over revenue sharing agreement issue.
Further, as per the deal, the payment towards first installment of Rs 500 crore will be made on August 13, while the remaining would be paid in October.
DLF has reported a 18.29 per cent year-on-year drop in consolidated net profit in the first quarter as it was weighed down by costly finance and slowdown in home sales. Finance cost for the quarter was up 25.6 per cent to Rs 623 crore from Rs 496 crore in the year-ago period.
DLF plans to earn Rs 6,000-Rs 7,000 crore from its new real estate projects that include plans in Gurgaon later this year. The company is expected to launch the second phase of its high-end luxury project Magnolia in the second half of the current financial year.
With inputs from Mail Today 
DLF Vice-chairman Rajiv Singh 
Special 
