DLF, India’s biggest real estate company, has selected Goldman Sachs as an advisor as it tries to find buyers for Aman Resorts, a luxury hotel chain it had purchased in November 2007 for $400 million.
Despite low-cost home loans, the company has suffered badly in its real estate market. It has said that it plans to exit non-core businesses and reduce its total debt to nil over a 3-year period.
A top company executive said, “DLF has decided to exit from the non-core businesses and focus on real estate development, including residential, commercial and retail. Since hotels are not a core business for DLF, it is looking at various options for Aman Resorts. However, the extent of divestment will depend upon the valuation that the potential suitors will bring on the table”.
DLF had purchased Aman Resorts, for $400 million in the 3rd quarter of 2007. The $400 million comprised of equity value of $250 million and $150 million of debt. DLF spokesperson Sanjoy Roy declined to comment saying “As a policy, we do not comment on market speculation”.
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