Cos resort to distress sales of non-core assets
some group companies, but is struggling to find buyers. The Hyderabad-based infrastructure company did, however, manage to sell its expressway project between Farukhnagar-Jadcheria to Macquarie SBI Infrastructure Investments for R206 crore on Wednesday after initially investing R146 crore in the project.
Real estate major DLF is also struggling under a massive debt burden of around Rs 21,200 crore and has sealed several deals recently in its attempt to trims its debt. But a closer look reveals a hint of desperation in sealing these deals.
In November 2012, the Delhi-based company sold a plot of land in Mumbai to its competitor Lodha Developers for R2,725 crore. On the face of it, DLF seemed to have got a good deal, having bought the land for R702 crore in 2005. But out of the money Lodha paid, R1,500 crore was to take on the debt of the project. In essence, DLF got only R1,225 crore as cash, not even double the amount it had invested initially.
In December, DLF also managed to sell off Aman Resorts, a luxury hospitality chain, for R1,641 crore, but the sale was to the chain’s founder Adrian Zecha after trying for long but failing to find another buyer.
Similarly, real estate company Unitech first announced plans to sell non-core interests including SEZs and IT parks in 2011 but with no takers so far, it has only been able to mop up money through sale of some land pockets.
The situation at Suzlon Group and Lanco is similar to a certain extent. While Suzlon
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