DLF to sell Amanresorts back to Zecha in $ 300 m deal

Reuters: DLF, India’s biggest property developer, will sell its Amanresorts luxury hotel chain back to original Indonesian owner Adrian Zecha for an enterprise value of around $ 300 million, the company said.

The deal does not include Lodhi Hotels, Amanresorts’ flagship property in New Delhi, and is expected to be completed by the end of February, DLF said in a statement to stock exchanges.

DLF Global Hospitality, a subsidiary of DLF, will sell its full stake in Silverlink, the controlling entity of Amanresorts to the Indonesian hotelier, DLF added. The Indian developer did not provide more details about the financial aspects of the deal or about the shareholding of the luxury resort chain, which was founded by Indonesian hotelier Zecha and whose assets have grown to include around two dozen hotels across 12 countries.

DLF had bought a controlling stake in Amanresorts in November 2007 for about $ 400 million.

Amanresorts has been on the block for around two years, as DLF seeks to sell non-core assets to reduce its Rs. 232 billion worth of debt.

DLF’s previous talks with a wide variety of suitors for Amanresorts, including Qatar Investment Authority, LVMH, Blackstone Group, and Starwood Capital had failed due to differences in valuations, sources had previously told Reuters.

DLF, which builds homes and offices mainly in its key market of northern India, reported a 63 per cent fall in net profit to Rs. 1.39 billion for the July-September quarter.

The developer recently sold a plot of land in Mumbai for about Indian Rs. 27 billion to smaller rival Lodha Group as part of its asset divestment strategy.

Citigroup advised DLF on the sale, a source with knowledge of the matter said.