Realty firm DLF, India’s greatest real estate company, has announced the sale of its luxury hospitality chain, Aman Resorts, back to the company’s creator, Adrian Zecha, for $358 million. This is a greater evaluation than DLF’s formerly agreement with Zecha, where it had received an evaluation of $300 million, in Dec 2012.
In a declaration on Sunday (9 February), DLF said its additional, DLF Global Hospitality Ltd, had finished the sale of the entire 100 % stake in Silverlink Resorts Ltd (which operates Aman Resorts) to Aman Resorts Group Ltd, a joint venture between Peak Hotels & Resorts Group & Adrian Zecha, for an enterprise valuation of $358 million.
The selling was by means of a management buyout & limits Lodhi Hotel in Delhi, the declaration included.
The statement, which comes days before DLF is to post its Q3 results for 2013-2014, will help the realty major decrease its debt by a big enormous. As of end-September, DLF’s debt was Rs 19,508 cr, which it plans to fetch down to Rs 17,500 cr by the end of this financial year. Of delayed, DLF has been on a disinvestment exercise and has sold Rs 10,000 cr value of non-core resources, for example added hotel plots, wind energy and insurance businesses to pare debt & concentrate on the core real estate business.
DLF had started talks with other hospitality chains & private equity firms after the exclusivity interval with Zecha got over in June 2013, due to non-payment problems. Aman Hotels, which has some 25 properties across the globe, was on the block for about 2 years before the contract with Zecha was declared for around $300 million in Dec 2012, the same cost at which DLF buy it in 2007.
The company was looking for higher appraisals of Aman, as its functions had lately converted successful for the first time. DLF group CFO Ashok Tyagi had cited enhanced operations & better Forex translation as the primary reasons.
Commenting on the deal, DLF executive director finance Saurabh Chawla said, “This sale of business is another major Mile stone in DLF’s way to focus on its core company of real estate & divest non-core businesses and assets.”
Zecha said: “I am pleased to partner with Peak, as they discuss my perspective for Aman’s future growth & are committed to sustaining our company’s reputation for many years to come.” Peak Hotels & Resorts Ltd is a trader in the high-class hospitality sector.
Aman Resorts has made an integral part of the group’s divestment strategy towards debt reduction.
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