China based HNA Group is leading the race to buy DLF's Aman Resorts

DLF, the largest realtor according to market capitalisation, is close to elling off its biggest non-core asset Aman Resorts to the China based HNA group, said sources close to the development.
The source adds, "HNA is running ahead in the race and close to finalising the deal. The valuation is slighlty above Rs 2000 crore. The bid amounts recieved from the Malaysian sovereign wealth fund Khazanah, luxury fashion group Louis Vuitton and Kingdom Holdings which owns the five star hotel chain Four Seasons were in the range of Rs 1800- 2000 crore for the property."
DLF spokesperson, Sanjey Roy, replied in an email, "We do not comment on market speculations."
DLF is expected to announce the deal by mid-January. Goldman Sachs and Citi group had been advising DLF on the deal. It is said that the founder of Aman Resorts, Adrian Zecha, was also a part of the final decision. DLF had bought 97 per cent stake in the company for a valuation of $400 million in 2007, during the realty boom. Since the downturn in the realty sector, DLF has been looking around for a buyer for this property.
An analyst tracking the company said, "They have been looking for a buyer since last two years for Aman Resorts, they were looking to raise Rs 2500 crore from the property which none of the buyers are looking to shell out. Also it is important whether it is an all cash deal or will there be staggered payments, as last week Crisil downgraded its various short term debt program worth Rs 237.3 billion according to its assesment that the debt levels may continue to remain high due to delay in disposal of assets non core assets and weakening cash flows. They really have to sell the assets now and generate cash on their books"
HNA Hotels and Resorts Group is part of the HNA group based out of China, which is headed by Chen Feng, the board chairman of the group. The hotel subsidiary operates more than 40 luxury hotels and resorts in China and has three hotel assets in Brussels and Belgium.
The Aman resorts has 25 assets across Thailand, Bhutan, Cambodia, China, France,Indonesia, Laos, Montenegro, Morocco, Philippines, Sri Lanka, the Turks and Caicos Islands and the US. It has three properties in India. After the stake offloading, DLF will retain the Delhi Aman property. The other two assets are in Rajasthan called the Aman-i-Khas and Amanbagh which will exchange hands.
On Aman sale, Saurabh Chawla, executive director of DLF had said at the end of the last quarter, "We have four bids in the second round and we are in the process of evaluating the bids, we hope to make a closure on this deal by next quarter end."
At the end of the day, DLF's stock closed at Rs 179.15 per share, down 2.13 per cent on BSE.

note written on January 2, 2012