Indian commercial real estate developer Delhi Land & Finance (DLF) is reportedly planning to sell its hotel plot in Goa for approximately ₹2.5bn ($34.2m) to divest non-core assets and pare debt.
The company has three land parcels in Goa that were purchased in the late 2000s for the development of residential, retail and hotel projects, Indian financial daily Live Mint has reported.
A couple of the sites have faced issues including procuring environment clearances, and are still to be developed.
“The existing land parcel is among the last in our list of non-core assets. We are looking forward to new launches in the state (Goa) as per our business plan,” the publication quoted a company spokesperson as saying.
DLF has been divesting its hospitality ventures and other non-core businesses and land since 2012 to reduce debts and focus more on its core commercial office and residential development business.
During this process, the company has also left many property markets to focus its business in Gurugram as well as other cities including Chennai.
In June 2012, it divested its stake in Adone Hotels and Hospitality to a Kolkata-based consortium Avani Projects and Square Four Housing and Infrastructure for approximately ₹5.67bn ($77.7m).
Mint report added that DLF reduced its debt from ₹52.15bn to ₹51bn in the December 2020 quarter.
During the extensive disruptions caused by Covid, the company changed its strategy to sell only residential properties upon completion of their construction.