Cash-Strapped DLF Sells its 66% Stake in Hindoostan Spinning & Weaving Mill

May 14, 2009	(Be the first to rate this story!)  Loading ...
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Cash-strapped realtor sDLF is selling its 66% stake in Hindoostan Spinning and Weaving Mill in central Mumbai to a Chennai-based serial entrepreneur for Rs 310 crore. India’s largest real estate company had acquired the mill land in 2007 jointly with Mumbai-based Akruti Builders for real estate. DLF vice-chairman Rajiv Singh confirmed the development. “The deal is happening, but we would not be able to share any further detail at this point of time. We can only say that the buyer is a corporate buyer. We will announce other details later,” he said.

Market sources, however, confirmed that the buyer is a Chennai-based serial entrepreneur presently settled outside India. The entrepreneur is a value investor who is currently negotiating several big-ticket deals. He is also making an attempt to reenter the Indian telecom sector, which he had quit some years ago. A senior DLF executive said the deal has already been struck. Only some formalities are remaining to complete the sale, he said, requesting anonymity. While DLF is selling its share of 5 acres, its partner Akruti is holding on to its share of 3 acres and might sell it to another buyer. Vimal Shah, managing director, Akruti City, declined to comment on the development. Akruti is looking at a higher valuation for the property, said a person privy to the development. DLF is also pursuing Akruti to sell its stake to the same buyer, he said, adding Akruti Builders is also in need of cash and may finalise a deal.

“The valuation for the total 8 acres is around Rs 450 crore. But Mr Shah should be able to share his side of the story,” said the DLF executive. He denied that the deal is a distress sale. Hindoostan Spinning and Weaving Mills, the defunct private mill located near the Siddhivinayak temple at Prabhadevi, was bought by the present owners for Rs 350 crore in 2007. It is not yet clear how DLF would use the proceeds from the deal.

News Published Under:   Mumbai, Chennai |

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