New Delhi: DLF Ltd, the country’s largest real estate firm, has said it expects revenues from DLF Assets - its commercial projects acquisition arm - to be significantly lower in the following quarters due to a wilting demand in office space.
DLF Assets Ltd (DAL), which has been set up to handle commercial projects of the company, owes DLF about Rs4,800 crore; the parent firm is expecting over Rs5,000 crore by the end of this fiscal year as payments for selling assets to it.
“Due to a sharp reduction in demand for leased office space, the balance delivery in DAL will be substantially delayed and accordingly the revenues accruing to DLF from the sale of DAL will not be significant at least for the next several quarters,” DLF said.
DLF had reported a 69% fall in net profit for the Q3 this fiscal year to Rs670.79 crore.
However, while declaring the Q2 results of the company, vice chairman Rajiv Singh had said: “If all go well, we can expect to receive in excess of Rs5,000 crore by the end of this financial year for assets from DAL in some mixture of debt and equity.”
“DAL has received a serious level of interest from large private equity investors and (it) expects to close this transaction soon, possibly within this financial year itself,” DLF said.
It is to be noted that DAL had deferred its plan to raise about $2 billion from an IPO in Singapore, but has managed to raise over $1 billion so far from private equity to purchase properties from DLF.