Debt-ridden DLF sells Amanresorts for $358 mn

Mail Today Bureau     New Delhi   Last Updated: February 10, 2014  | 09:19 IST

Real estate major DLF on Sunday announced that it has clinched the deal to sell its luxury hospitality chain Amanresorts to its original founder Adrian Zecha for $ 358 million (around Rs 2,200 crore). DLF is expected to use the money to reduce its debt burden. This forms part of the strategy to exit noncore businesses.

The deal, however, excludes the iconic Lodhi Hotel in Delhi which will remain a part of DLF Ltd.

According to a DLF statement, its subsidiary, DLF Global Hospitality Ltd, has completed the sale of entire 100 per cent stake in Silverlink Resorts Ltd, which owns Amanresorts, to Aman Resorts Group Ltd for an enterprise value of $ 358 million.

Aman Resorts Group Ltd is a Joint Venture between Peak Hotels and Resorts Group Ltd and Adrian Zecha. The sale has been in the form of management buyout.

In December 2012, DLF had signed a pact with Indonesian hotelier Zecha to sell Amanresorts for $ 300 million (about Rs 1,600 crore).

However, the deal was not completed in the stipulated time- frame of June 2013, forcing DLF to walk out of the exclusivity pact. After ending the exclusivity clause, the realty major was in discussion with Zecha and a few other potential investors to sell Amanresorts which has about 25 properties across the world.

DLF Global Hospitality Ltd had purchased 100 per cent equity in Amanresorts in 2007 from a group of investors.

Commenting on the deal, DLF executive director finance Saurabh Chawla said, "This sale of business is another major milestone in DLF's strategy to focus on its core business of real estate and divest non- core businesses and assets.'' Speaking on the deal Adrian Zecha said, " I am delighted to partner with Peak as they share my vision for Aman's future growth and are committed to sustaining our company's reputation for many decades to come." Peak Hotels and Resorts Ltd is an investor in the luxury hospitality industry.

To reduce debt and focus on core realty business, DLF has been selling its non- core assets since last three years. It has raised about Rs  10,000 crore through divestment of its non- core assets that includes hotel plots and wind energy.