DLF Ltd, India’s largest realtor by market capitalisation, has embarked on a land-selling spree. The company recently sold 500 plots of 200-400 yards in Indore, Madhya Pradesh, mopping up around Rs 110 crore at an average Rs 800 per square feet.
More sales are being consummated, some in south India, which will garner slightly larger amounts than Indore, said sources. Rajiv Talwar, group executive director at DLF, confirmed the development but said he cannot disclose price details. “The valuations were reasonable. We are also looking to sell some hotel plots etc,” he said.
After DLF’s exit from the Bidadi project in Bangalore and Dankuni in West Bengal, its land bank fell to 425 million square feet compared with 751 million square feet. It added another land parcel of 350 acre through bidding at Haryana State Industrial Infrastructure Development Corporation, Gurgaon.
At present it has a land bank of 432 million square feet. In the September quarter, DLF had sold two land parcels in Mumbai, which was bought by serial entrepreneur Sivasankaran. Rising prices have also helped. Samir Jasuja, chief executive of PropEquity, a real estate data and analytics provider said project launches from April 2008 to April 2009 have seen price escalations, especially since the absorption in metros has been good. “The prices in some cases have even gone up by 5-15 percent, and I expect the land prices to remain stable or slightly go up now on,” Jasuja said. DLF had earlier said that it is looking to sell land assets in 2009 to raise Rs 2,000 crore in a bid to retire debt.