DLF, India's largest real estate company, has announced the sale of its luxury hospitality chain, Aman Resorts, back to the company's founder, Adrian Zecha, for $358 million. This is a higher valuation than DLF's earlier agreement with Zecha, where it had received a valuation of $300 million, in December 2012.
In a statement on Sunday, DLF said its subsidiary, DLF Global Hospitality Ltd, had completed the sale of the entire 100 per cent stake in Silverlink Resorts Ltd (which owns Aman Resorts) to Aman Resorts Group Ltd, a joint venture between Peak Hotels and Resorts Group and Adrian Zecha, for an enterprise valuation of $358 million.
The announcement, which comes days before DLF is to post its third quarter results for 2013-14, will help the realty major reduce its debt by a huge quantum. As of end-September, DLF's debt was Rs 19,508 crore, which it plans to bring down to Rs 17,500 crore by the end of thisfinancial year. Of late, DLF has been on a disinvestment spree and has sold Rs 10,000 crore worth of non-core assets, including hotel plots, wind energy and insurance businesses to pare debt and focus on the core real estate business.The sale was in the form of a management buyout and excludes Lodhi Hotel in Delhi, the statement added.
DLF had started talks with other hospitality chains andprivate equity firms after the exclusivity period with Zecha got over in June 2013, due to non-payment issues. Aman Resorts, which has some 25 properties across the world, was on the block for about two years before the deal with Zecha was announced for around $300 million in December 2012, the same price at which DLF bought it in 2007.
The company was looking for higher valuations of Aman, as its operations had recently turned profitable for the first time. DLF group Chief Financial Officer Ashok Tyagi had cited improved operations and better forex translation as the primary reasons.
Saurabh Chawla, DLF's executive director (finance), said: "This sale of business is another major milestone in DLF's strategy to focus on its core business of real estate and divest non-core businesses and assets."
Zecha said: "I am delighted to partner with Peak, as they share my vision for Aman's future growth and are committed to sustaining our company's reputation for many decades to come." Peak Hotels and Resorts Ltd is an investor in the luxury hospitality sector.
Aman Resorts has formed an integral part of the group's divestment strategy towards debt reduction.
DEBT STRATEGY Rs 19,508 crore: DLF's debt at the end of September quarter Rs 17,500 crore: DLF's debt target by the end of current financial year Rs 10,000 crore: What DLF raised through divestment of non-core assets
Source : Smart Investor
In a statement on Sunday, DLF said its subsidiary, DLF Global Hospitality Ltd, had completed the sale of the entire 100 per cent stake in Silverlink Resorts Ltd (which owns Aman Resorts) to Aman Resorts Group Ltd, a joint venture between Peak Hotels and Resorts Group and Adrian Zecha, for an enterprise valuation of $358 million.
The announcement, which comes days before DLF is to post its third quarter results for 2013-14, will help the realty major reduce its debt by a huge quantum. As of end-September, DLF's debt was Rs 19,508 crore, which it plans to bring down to Rs 17,500 crore by the end of thisfinancial year. Of late, DLF has been on a disinvestment spree and has sold Rs 10,000 crore worth of non-core assets, including hotel plots, wind energy and insurance businesses to pare debt and focus on the core real estate business.The sale was in the form of a management buyout and excludes Lodhi Hotel in Delhi, the statement added.
DLF had started talks with other hospitality chains andprivate equity firms after the exclusivity period with Zecha got over in June 2013, due to non-payment issues. Aman Resorts, which has some 25 properties across the world, was on the block for about two years before the deal with Zecha was announced for around $300 million in December 2012, the same price at which DLF bought it in 2007.
The company was looking for higher valuations of Aman, as its operations had recently turned profitable for the first time. DLF group Chief Financial Officer Ashok Tyagi had cited improved operations and better forex translation as the primary reasons.
Saurabh Chawla, DLF's executive director (finance), said: "This sale of business is another major milestone in DLF's strategy to focus on its core business of real estate and divest non-core businesses and assets."
Zecha said: "I am delighted to partner with Peak, as they share my vision for Aman's future growth and are committed to sustaining our company's reputation for many decades to come." Peak Hotels and Resorts Ltd is an investor in the luxury hospitality sector.
Aman Resorts has formed an integral part of the group's divestment strategy towards debt reduction.
DEBT STRATEGY Rs 19,508 crore: DLF's debt at the end of September quarter Rs 17,500 crore: DLF's debt target by the end of current financial year Rs 10,000 crore: What DLF raised through divestment of non-core assets
Source : Smart Investor
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