You are here: Home » Companies » News » Real Estate
Business Standard

GIC seeks CCI nod for Rs 9,000 cr deal to acquire stake in DLF rental arm

The wealth fund will buy shares in DLF Cyber City Developers Ltd from DLF promoters

Press Trust of India  |  New Delhi 

Representative image
Representative image

Singapore's sovereign wealth fund has approached fair trade regulator seeking approval for its deal to acquire stake in rental arm for Rs 8,900 crore and form joint venture with the realty firm.

had in late August agreed to buy 33.34 per cent stake in DLF's rental arm Cyber City Developers Ltd (DCCDL) for Rs 8,900 crore. will buy in DCCDL from promoters.

According to sources, has approached the Competition Commission of (CCI) to get approval for this deal.

The deal is expected to be approved by next month, they added.

On its part, last week got approval for promoters' decision to sell their entire 40 per cent stake in the rental arm for Rs 11,900 crore.

This deal included sale of 33.34 per cent stake in DCCDL to for Rs 8,900 crore and a of the remaining worth Rs 3,000 crore by DCCDL.

Post this deal, will have 66.66 per cent stake in DCCDL and 33.34 per cent in the joint venture.

"Institutional 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 with GIC, Chawla said.

promoters -- K P Singh and family -- will infuse the net proceeds into for repayment.

While promoters are expected to invest about Rs 10,500 crore into the company, expects to raise another Rs 3,000 crore from institutional as the company will have to hit the capital market to maintain promoters shareholding at 75 per cent post their infusion of funds.

would use this Rs 13,500 crore to repay its that stood at nearly Rs 26,000 crore at the end of the June quarter.

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.

First Published: Mon, October 02 2017. 18:13 IST