The country?s largest real estate firm DLF has sold 10.8 acres in Gurgaon to a Dubai-based Indian investor for R280 crore, as part of efforts to reduce its debt burden by a third this fiscal. The company is also in talks with other NRI investors to sell another 20 acres in Gurgaon, which is expected to fetch around R400 crore.

DLF?s debt stood at R21,524 crore as on June 30. The company plans to reduce this by R7,000 crore this fiscal. When contacted, DLF?s spokesperson declined to comment.

Earlier this month, DLF had sold a plot to M3M India for R400 crore. The company is also in the process of selling two IT parks to Blackstone and IDFC. Sources said the deal could fetch another R1,500 crore.

In a first, DLF is selling land with the floor space index (FSI), which means the buyer will need no more sanctions and can start construction right away. The FSI-based sale would help DLF mop up more than twice what a normal sale would have got, sources said. Today, developers either sell land from their existing bank or sell their end-use properties.

It is understood that DLF will now sell land with respective FSIs wherever it has the option to do so. FSI is a ratio of the area of construction allowed on a plot against the available land. In the Gurgaon deals, with an FSI of 2.5, buyers have the option of building more than double the plot size. With 10.8 acres, after leaving the mandatory space, a builder can construct commercial units on nearly 18 acres, experts said.

DLF has a land bank of close to 370 million sq ft, of which 10% is non-core. All the Gurgaon land parcels, Noida and Pune IT park are part the ‘non-core assets’. The company is in the process of identifying more such non-core land for monetisation in other cities. It has so far realised over R3,600 crore from sale of non-core assets including hotel plots.

DLF has again started looking for a strategic partner for its luxury hotel chain Aman Resorts, which it acquired for R3,500 crore in 2007. The search has resumed after a year?s hiatus as the company feels the burden of mounting debt.

DLF reported a 12.81% decline in its consolidated net profit at R358.36 crore during the first quarter ended June 30.