DLF Cyber City Developers (DCCDL), the rental business of real estate giant DLF, has raised Rs 1,100 crore by selling non-convertible debentures (NCDs). This money will be used to pay off expensive debt and cut interest expenses. The business, which is a joint venture between DLF and GIC Singapore’s sovereign wealth fund, said that it has successfully placed 1,10,000 NCDs privately. The board approved a coupon rate of 6.91 per cent per year, which is paid every three months.
DLF’s Managing Director (Rental Business) and Vice Chairman Sriram Khattar emphasised that the company constantly examines its treasury portfolio in order to minimise interest expenses. The company will strengthen its financial position by replacing higher-cost borrowings with the recent proceeds. DCCDL had a net debt of Rs 17,287 crore at the end of the fiscal year’s April-june quarter.
DCCDL administers 44 million square feet of commercial real estate, including offices and stores in cities like Gurugram. This portfolio, which makes up a large part of the DLF Group’s holdings, shows that the company is focused on properties that can reliably generate rental income. The company’s net profit rose 26 per cent to Rs 593 crore in the June quarter, mostly because of higher rental earnings. The overall income grew 12 per cent year-on-year to Rs 1,739 crore within the same period.
DLF Group’s main activity is the development of residential real estate, in addition to its annuity business, which involves leasing retail and commercial properties. Since most of the group’s commercial assets are situated in DCCDL, its strategic focus is on efficiently managing its revenue-generating assets while optimising debt cost structures. |
