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DLF to sell commercial assets worth Rs 9,300 cr to JV with GIC

Press Trust of India  |  New Delhi 

Realty will sell completed rental assets and commercial land parcels worth about Rs 9,300 crore to its joint venture with Singapore's

In the joint venture firm Cyber City Developers Ltd (DCCDL), has 66.66 per cent stake while holds the remaining 33.34 per cent. acquired the stake in DCCDL in late December from DLF promoters for about Rs 9,000 crore.

In an presentation, DLF said it needs to pay about Rs 9,300 crore to DCCDL.

"Payables to to be settled via sale of certain yielding assets and land parcels earmarked for commercial use," it added.

Later in a conference call, DLF's said the company would like to transfer all commercial assets, including land parcels, to the JV but certain assets cannot be transferred due to regulatory norms.

DLF has completed rent-yielding assets in and has commercial land parcels in Gurugram and Chennai that can be transferred to DCCDL, Chawla said, adding that the company is in discussions with GIC to transfer these assets.

"We will square off DLF payables to DCCDL by transferring some commercial assets," Chawla said.

India's largest realty firm is likely to transfer about Rs 3,500 crore worth completed rental assets and about Rs 6,000 crore worth land parcels.

DLF said that its JV with GIC has been designed to take the form of a business trust, a kind of a private REIT (Real Estate Investment Trust).

Moreover, DLF can sell land parcels earmarked for commercial development to the JV.

DLF promoters -- K P Singh and family -- had in August last year sold entire 40 per cent stake in DCCDL for Rs 11,900 crore. This deal included sale of 33.34 per cent stake in DCCDL to GIC for Rs 8,900 crore and buy-back of remaining shares worth Rs 3,000 crore by DCCDL.

This deal got concluded in late December. As a result, DLF's stake in increased to 66.66 per cent from 60 per cent, while GIC has the balance stake in the JV.

Post this transaction, DLF promoters infused Rs 9,000 crore in the company and would pump in Rs 2,250 crore more over the next 18 months.

DLF has made preferential allotment of compulsorily convertible debentures (CCDs) and warrants to the promoters against infusion of funds.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 14 2018. 18:55 IST