India’s top developer DLF seeks to introduce residential spaces of small sizes with affordable price options and is looking for better opportunities on the sluggish real estate market for these units, according to executives. The developer is thinking to introduce more new projects and developments in New Gurgaon apart from Shivaji Marg project’s next phase in Delhi.
Over the past 30 days, they have witnessed the growth in sentiment. But they won’t translate into the untapped sales. Over the next couple of months, they will know the exact figure, according to Group CFO Ashok Tyagi on conference.
The plans of the company are to go small and they will be limited to new projects. But they won’t add any changes on the projects which have been launched already. They are planning to see total sales booking of around Rs. 3000 to 3500 Crores in this financial year as what they did last year. In the combined net profit in June quarter, they have seen 29.5% decline, as compared to the period a year ago. The total revenue of the developer was gone down by 25.4%.
DLF Executive Director (Finance) Saurabh Shukla said that REITs or Real Estate Investment Trusts are looking feasible after new budget by Arun Jaitley (Finance Minister). They are looking the regulations carefully on REIT. They are trying to improve their buildings internally in order to take some assets to REITs.
They are also planning to offer some of its major assets and raise further Rs. 3000 to Rs. 3500 crores on special economic zones for CMBS (Commercial Mortgage Backed Security). The developer has invested Rs. 900 Cr. last quarter through CMBS route.
In order to further control its debt, DLF is thinking to plan other disposals of non-core assets in the next quarters and they have clarified that no other large marquee assets will be there. They had achieved Rs. 5930 Cr. worth of sales in 2013-14 with different divestments along with the business of luxury hotels. Their net debt was increased to Rs. 19064 Cr. They are further looking to invest in new assets in New Gurgaon.
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