LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » Companies News

DLF plans to sell Rs 15,000 crore completed flats in 3-4 years

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
DLF plans to sell Rs 15,000 crore completed flats in 3-4 years
DLF promoters have already infused Rs 9,000 crore in the company and plans to pump in Rs 2,500 more. Image source: PTI
Written By: PTI
Updated: Sun, Feb 18, 2018
03:01 pm
PTI

Realty major DLF will focus on selling ready-to-move-in flats worth Rs 15,000 crore over the next 3-4 years and launch new projects for sale only after reaching an advanced stage of construction.

Out of Rs 15,000-crore worth of housing units, around Rs 9,000-10,000-crore inventories are in Gurgaon.

The real estate sector, particularly housing, is facing multi-year demand slowdown, resulting in sluggish sales and unsold inventories.

In an investor presentation, the country's largest realty firm said the company has modified its business model for residential segment.

It will "sell completed product or products which are at an advanced stage of completion instead of selling off a plan".

The new business model will help the company in achieving higher realisation besides mitigating regulatory risks and delays beyond its control, DLF said.

"Empirically, it has been observed that the price of the finished/completed product is valued significantly higher than what it is priced at the time of the launch," the presentation said.

In the revised model, DLF said the increase in working capital costs would be marginal as construction finance is available at attractive rates, currently at about 9.25 per cent.

"The company will focus on selling the completed inventory valued at about Rs 15,000 crore (net of pending construction payments) on its books over the next 3-4 years," the presentation said.

DLF said the company would start development of new projects to create completed inventories, which would be open for sales in pace with the demand for its current completed stocks.

The realty firm has initiated the process to start construction of its housing project at Moti Nagar in central Delhi.

This project, with a total saleable are of about 7 million sq ft, is in joint venture with GIC, the Singapore's sovereign wealth fund.

GIC had invested nearly Rs 2,000 crore to acquire about 50 per cent stake in this project.

In commercial segment, DLF has already formed a JV with GIC.

In the joint venture firm DLF Cyber City Developers Ltd (DCCDL), DLF has 66.66 per cent stake while GIC has the rest 33.34 per cent shareholding.

GIC acquired stake in DCCDL from DLF promoters for nearly Rs 9,000 crore.

DCCDL holds bulk of rent-yielding commercial assets of DLF group.

DLF promoters have already infused Rs 9,000 crore in the company and plans to pump in Rs 2,500 more.

This has helped DLF in reducing debt substantially. At present DLF's debt stands at about Rs 5,500 crore, while the net debt of JV firm DCCDL is around Rs 16,000 crore.

It's overall net debt stood at nearly Rs 27,000 crore as on September 30, 2017. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Moti NagarDLFDLF Cyber City Developers LtdJV firmflatsMoti Nagar
RELATED NEWS

LATEST NEWS

Rakesh Jhunjhunwala stocks: This Big Bull-owned MULTIBAGGER has delivered more than 42 pct in less than two month

US continues to see drop in new Covid cases

Announcement LIVE: IIT JEE Main 2021 Result February - Date, time, declaration on NTA website direct link jeemain.nta.nic.in, download answer key, score checking and more

Stock Market Outlook: Focus will be on these - Check what share bazaar experts, analysts opined

West Bengal Elections: PM Narendra Modi launches blistering attack on Mamata Banerjee - Top quotes

Life Insurance Coverage Calculator: Simple cover calculation in just 3 steps - EXPLAINED

Andhra Pradesh trade body to promote IP rights, registration for MSMEs

Twitter CEO and billionaire Jack Dorsey puts his 1st tweet on sale, bid reaches Rs 2 cr

Mumbai-Ahmedabad Bullet Train: Tech bids open for bridge project - Check latest news development

Super hi-tech driverless pod taxis for Noida Aiport! Check Yogi Adityanath government's big plans for Jewar

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved