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Bloomberg
India’s largest listed property developer expects many of its smaller peers to go belly-up as creditors cut financing after a shock default.
“Weaker balance sheets are going to fall off, while large listed developers will get though current liquidity crisis,†Saurabh Chawla, outgoing chief financial officer of DLF Ltd., said. Smaller developers have already been struggling amid a slump in apartment sales and prices over the past two years. Now, they are also finding it tougher to access the bond markets as investors become more cautious about default risks after the shock failure by Infrastructure & Leasing Financial Services Ltd.
Larger real estate companies are paring assets to get through the crisis. Top developers including DLF, Indiabulls Real Estate and Lodha Developers have been selling their rent-yielding assets or other developed projects to raise funds and pare debt.