DLF likely to sell 50% stake in Mumbai project

DLF likely to sell 50% stake in Mumbai project
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First Published: Fri, Jul 03 2009. 12 57 AM IST
Updated: Fri, Jul 03 2009. 12 57 AM IST
Mumbai: Realty firm DLF Ltd may sell 50% stake in one of its upcoming commercial projects in suburban Mumbai, people close to the development said on condition of anonymity.
The project, called Niharika in Andheri East, is a 50:50 joint venture with city-based developer Akruti City Ltd.
DLF is likely to raise up to Rs400 crore from the sale of 900,000 sq. ft space in the project to a foreign fund, these people said.
Niharika is a “mixed” development project with both retail and commercial office facilities.
The deal is still in the process of legal documentation and could be signed early next week.
DLF, however, said it does not comment on market speculation.
The move comes as a part of the developer’s plan to generate cash flow through sale of hotel plots and non-core assets.
According to a recent report by domestic brokerage India Infoline Ltd, or IIFL, DLF intends to generate Rs3,500 crore via asset sale in fiscal 2010. In a similar transaction recently, the company had sold 66% of its stake in Hindustan Spinning and Weaving Mill in central Mumbai to a Chennai based entrepreneur for Rs310 crore.
Akruti City, however, had been DLF’s joint venture partner in that project too.
cnbctv18@livemint.com
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First Published: Fri, Jul 03 2009. 12 57 AM IST
More Topics: CNBC-TV18 | DLF | Akruti City | India Infoline | IIFL |