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DLF Ltd, India’s largest real estate developer, plans to refinance around Rs 1,300 crore of debt, up for repayment this year, at reduced interest cost, the company said at an analyst presentation late on Thursday.
‘…DLF Ltd’s (ex-DCCDL) debt repayments for current fiscal are Rs 1,300 crore. While these can easily be serviced from the current cash levels, we are working towards refinancing this debt to maintain strong liquidity position throughout the year. New funding being done at reduced interest costs thereby reducing outflow,’ the company said.
DLF, the development arm of the group, has Rs 5,267 crore of net debt. DLF Cyber City Developers Ltd (DCCDL), the rental portfolio comprising 30 million sq ft of operational office and retail assets, has net debt of Rs 18,007 crore. While DLF has cash reserve of around Rs 2,500 crore, DCCDL’s cash reserve is at Rs 1,300 crore.
In December 2017, in a bid to monetise its commercial assets, DLF promoters sold their 40 per cent stake in DCCDL to Singapore’s GIC for nearly Rs 12,000 crore. The deal included sale of 33.34 per cent in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares of about Rs 3,000 crore by DCCDL. DLF said it is evaluating and bringing more focus on efficient cost and organisation structures and tight control on cash flows.
