DLF may sell Aman Resorts for $350 million

India's largest realty firm DLF is in advance stage of discussion to sell luxury hospitality business Amanresorts for around $350 million (about Rs 1,900 crore) and the deal may be finalised next month.

Recently, DLF sold 17 acres of prime land in Mumbai to Lodha Developers for Rs 2,700 crore (Rs 27 billion) -- almost four times higher than the price it had paid in 2005 -- as part of the company's strategy to exit from non-core business and cut debt that stood at Rs 22,680 crore (Rs 226.8 billion) as on June 30.

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DLF had acquired a controlling stake in Aman Resorts for $400 million in 2007. It has now 100 per cent stake in the hospitality chain that has about 25 resorts across the world.

The company has put Aman Resorts on block for sale except its property at Lodhi Road in the national capital.

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According to sources, the negotiations are in advanced stage and the deal could be closed next month. The size of the deal is likely to be in the range of around $350 million, they added.

When contacted, DLF spokesperson Sanjey Roy said: "We do not comment on market speculations."

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DLF aims to cut debt by Rs 5,000 crore (Rs 50 billion) this fiscal by selling three major non-core businesses -- Mumbai land, Aman Resorts and wind energy.

The divestment proceeds of Mumbai land from Lodha is expected to come into DLF's account by October. So far, DLF has got Rs 500 crore (Rs 5 billion) as advance from Lodha.

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DLF has raised nearly Rs 8,000 crore (Rs 80 billion) from sale of non-core-assets (hotel plots and IT SEZs/Parks) in the last couple of years and the figure includes the recent land deal with Lodha Developers of Rs 2,700 crore (Rs 27 billion).