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DLF sells 50% stake in two projects to Singapore's sovereign wealth fund GIC for Rs 1,990 cr

The realty major said it would utilise this fund to meet operational cost and reduce debt, which stood at Rs 21,598 crore as on June 30.

Mail Today Bureau | September 3, 2015 | Updated 07:29 IST
DLF sells 50% stake in two projects to Singapore's sovereign wealth fund GIC for Rs 1,990 cr
DLF's Chief Executive Officer Mohit Gujral said that the JV with GIC will help the company to potentially unleash many more signature developments and herald a new era of smart cities. (Photo: Reuters)

The country's largest real estate firm DLF sold about 50-per cent stake each in two of its upcoming projects in the capital to Singapore's sovereign wealth fund GIC for Rs 1,990 crore on Wednesday. To boost cash flow and reduce debt, the company's arm DLF Home Developers (DHDL) and GIC have entered into a joint venture (JV) to invest in two upcoming projects located in central Delhi.

"DLF is raising private equity at project levels after a gap of four to five years. GIC will invest approximately Rs 1,990 crore. The JV is expected to benefit from GIC's experience of investing in integrated developments across the globe," DLF said in a statement.

The real estate major is reported to have sold around 50 per cent shareholdings in the two upcoming projects, spread over 25 acres and adjacent to its existing project Capital Green, Moti Nagar. DLF would utilise this fund to meet operational cost and reduce debt, which stood at Rs 21,598 crore as on June 30. With sluggish property market in last two to three years, DLF announced in February that it would raise more than Rs 3,000 crore through divestment or JVs in certain projects to improve cash flow and reduce debt.

"We hope that this investment is a beginning of a new relationship with GIC at the project level. We look forward to working together with GIC in many projects-both residential and commercial," DLF Senior Executive Director Finance Saurabh Chawla said. "Going forward, such project level investment shall lead to unlocking of embedded value in many of DLF's development projects", he added.

DLF's Chief Executive Officer Mohit Gujral said that the JV with GIC will help the company to potentially unleash many more signature developments and herald a new era of smart cities.

Loh Wai Keong, managing director and co-head (Asia), GIC Real Estate, said, "GIC is confident in India's long-term growth potential and we look forward to partnering DLF to tap into the attractive opportunities of India's real estate. The company expects to collaborate with DLF on more projects in the future."

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