Bangalore: DLF, an Indian reality firm, is likely to sell its 50 percent stake in Niharika, an upcoming commercial project in suburban Mumbai. This project is a 50:50 joint venture with Mumbai-based developer, Akruti City. Niharika is a 'mixed' development project with both retail and commercial office facilities.

According to sources, DLF is likely to raise upto Rs.400 crore from the sale of 900,000 sq. ft space in the project to a foreign fund. This deal is expected to be signed next week after the process of legal documentation is over.

The move comes as a part of the developer's plan to generate cash flow through sale of hotel plots and non-core assets. According to India Infoline, a domestic brokerage firm, DLF has planned to generate Rs.3,500 crore via asset sale in fiscal 2010.

In a similar transaction recently, the company had sold 66 percent of its stake in Hindustan Spinning and Weaving Mill, in central Mumbai, to a Chennai-based entrepreneur for Rs. 310 crore. Even in this project, Akruti City was DLF's joint venture partner.