Realty major is in talks with private equity players to raise funds for the development of a commercial property on 11.76 acre land in that it recently bought for about Rs 16 billion, a senior outfit official said on Saturday.
India's largest realty enterprise could dilute up to 50 per cent stake in this 2.5 million sq ft commercial project, DLF's CFO Saurabh Chawla said.
In February this year, had bought this land for Rs 14.96 billion in an e-auction conducted by the (HSIIDC). After including the stamp duty, the total cost to purchase this land came to about Rs 16 billion.
"We bought this land in as it was close to Cyber City and was strategic for the company. Now, we are looking for a partner for development of this project," Chawla told PTI.
He said the outfit is in talks with many private equity funds and expects to close this deal by September.
Chawla, however, declined to name the private equity players with whom discussions were taking place and also the amount the outfit was viewing to raise for this project.
"This deal would be similar in nature as we did with investment firm GIC for housing projects in Delhi," he further.
In September 2015, Singapore's sovereign wealth fund GIC had invested about Rs 20 billion in DLFs two housing projects in the national capital.
Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.
DLF is a popular developer of commercial properties in the country and has more than 30 million sq ft of rental assets, mostly office space, which it owns directly as well as through JV with GIC.
It's promoters had in December last year sold 33.34 per cent stake in (DCCDL) to GIC for Rs 90 billion. DLF holds 66.66 per cent stake in the DCCDL, which holds bulk of its commercial assets.
DLF said in a presentation that it would build commercial products for sale either to retail customers (B2C) or to DCCDL as investment properties (B2B). It also has the flexibility to hold the property as investment property earning lease rentals.
DCCDL group right now owns and operates a pan-India portfolio of about 27 million sq ft, which is slated to grow more than double in the next 10 years.
"DCCDL shall act as a 'Business Trust' not only will it build its own investment properties (about 25 million sq ft potential embedded in the JV) but shall also have the ability to purchase investment properties, at FMV, being developed by DLF or third parties," the presentation said.
Yesterday, DLF reported a 56 per cent boost in its consolidated net profit at Rs 1.72 billion for the first quarter of this fiscal. Its net profit stood at Rs 1.10 billion in the year-ago stage.
Total income, however, declined to Rs 16.57 billion during April-June this fiscal from Rs 22.11 billion in the corresponding stage of the previous year.