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Singapore's sovereign wealth fund GIC has approached fair trade regulator CCI seeking approval for its deal to acquire stake in DLF rental arm for Rs 8,900 crore and form joint venture with the realty firm.
The deal is expected to be approved by next month, they added.
"Institutional investors have overwhelmingly supported this strategic transaction, which will be a game-changer for the company. This will not only remove conflict of interest and reduce significantly the company's overall debt, but create free cash flows," DLF's Senior Executive Director (Finance) Saurabh Chawla told PTI.
"We intend to create a pure play in our commercial and residential businesses," he said.
While the residential business will be driven 100 per cent by DLF, the commercial segment will be run in a JV with GIC, Chawla said.
While promoters are expected to invest about Rs 10,500 crore into the company, DLF expects to raise another Rs 3,000 crore from institutional investors as the company will have to hit the capital market to maintain promoters shareholding at 75 per cent post their infusion of funds.
DLF Cyber City Developers Ltd has rent yielding assets of 26.9 million square feet with annual rental income of over Rs 2,500 crore. It has an under-development pipeline of 2.5 million sq ft with further development potential of 19 million sq ft within the portfolio.