DLF Urban, DLF Midtown ceases to be DLF arms post GIC

Realty major DLF today said DLF Urban Pvt Ltd and DLF Midtown Pvt Ltd ceased to be its subsidiaries following the Rs 1,992-crore investment by Singapore's sovereign wealth fund GIC in the two upcomimg projects in the national capital.
Last week, DLF had received Rs 1,992 crore from GIC, thereby completing the deal to sell 50 per cent stake each in two upcoming projects in the national capital.
In a filing to the BSE, DLF informed that "subsequent to receipt of funding and issuance of securities, two joint venture companies namely, DLF Urban Pvt Ltd and DLF Midtown Pvt Ltd, ceased to be subsidiaries of DLF.".

"Accordingly, DHDL (DLF Home Developers Ltd) owns 49 per cent equity shares in each of the said entities," it added.
In September, DLF had announced that its arm DHDL and GIC have entered into a joint venture for two upcoming projects located adjacent to existing project Capital Green at Moti Nagar here.
DLF has raised private equity at project levels after a gap of 4-5 years. The company's group CFO Ashok Tyagi had said that funds would be used 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 had said on the GIC deal.

(REOPENS DCM 110)
Later in a statement, DLF said: "The company successfully consummated the DT cinemas sale to PVR resulting in a one-time extraordinary gain of Rs 372 crore."
During the first quarter, the company achieved gross sales of Rs 470 crore, while gross leasing stood at 0.86 million sq ft. It completed projects of 3.63 million sq ft and delivery is underway.
On the market, the company said that the housing sector remained muted across all micro-markets.
"The company continues to implement its strategy of completing legacy projects and creating finished inventory and hence well positioned to profit when there is an uptick in the market dynamics," it added.

DLF said that it expects increased momentum in the commercial space.
"As the company has exhausted most of its available commercial stock, it has commenced construction of office space in Chennai IT SEZ in the second quarter. Construction of Cyber Park (Gurgaon) at full pace and finishing of luxury retail mall at Chanakyapuri is underway," the statement said.
DLF is focused on aggregating leases which are expiring to enable it to contract it to 'high value' high credit worthy tenants.