DLF has exited the cinema space with the offer of its last seven screens — six in Saket and one in Greater Kailash-II, New Delhi — to Mexican chain Cinepolis for ₹63.67 crore.

As per the orders of the Competition Commission of India, the seven screens were kept out of the asset-sale arrangement with PVR. This is in continuation with DLF’s drive to monetise non-core assets and focus on the fundamental business.

Speaking to BTVi , DLF CEO Rajeev Talwar says that the valuations were by far superior after the CCI order. The company is also in the process of offloading 40 per cent in DLF CyberCity Developers to mop up ₹10,000-14,000 crore, he said.

With regard to the monetisation of your non-core assets, especially in the cinema business, could you take us through the valuations you saw there?

After the CCI notification, the value of 39 screens for ₹500 came down to 32 screens for ₹433, of which you have received ₹333 crore. These seven screens have gone out for ₹64 crore.

Are you completely done with the screen deals, will the final ₹100 crore of receipts flow into your P&L (profit-and-loss statement)?

I think the valuations were even better after the CCI order. They became better even after Cinepolis took the last seven screens. So, we are very happy with the development. And the competition in this is space is hotting up.

So this seems to be a good business even in the future because many of our new retail developments will come with cinemas and multiplexes.

And therefore for them, it will now not be a divestment business, but probably a bidding and leasing business for us. Therefore, it seems to auger well for the future.

India itself is developing a new paradigm in the entertainment and the retail businesses where the two will provide a good source of income for the developers and the citizens.

It will be a greater opportunity for indulging in entertainment and leisure, as well as eating out, dining and shopping.

Your rental arm DLF CyberCity Developersplans to sell a 40-per cent stake to monetise ₹12,000 crore, by early October. What is the timeline for that?

Have you identified the players who are likely to participate?

The process is on. We cannot lay down a timeline. These are matters of intense due diligence and serious negotiations, which is on. But I think the rough plan has already been told, and that it should be ₹10,000-14,000 crore. I think we will try and see what will be the best offering in the market.

Non-core asset monetisation is something the company has been pursuing quite steadfastly. In 2013-2014, there was sale of wind-energy business, the insurance business and Aman Resorts.

In 2012, there was a land-parcel sale in Mumbai that was undertaken to Lodha Developers.

What has been the cumulative quantum by which the debt has come down, and, more importantly, what is the debt-equity ratio target for the next fiscal year?

The net debt reduction, the current capex and the inflow has been substantial. It has been declared every quarter and every year. We do have debt divided between these assets and development projects, which we will be able to square off hopefully through various processes.

We will be able to square off in the development projects and keep some debt into the leased assets, which will be self-supporting because what is being offloaded is only 40 per cent of the DLF CyberCity Developers.

So that would leave a remaining amount of inflows for all these rentals — good enough not only for debts servicing but also for capex and administrative expenses.

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