Workers walk past a DLF Ltd. construction site in New Delhi. (Photographer: Pankaj Nangia/Bloomberg News)

DLF Eyes Partner For Project On Rs 1,600-Crore Land In Gurugram

Realty major DLF Ltd. is in talks with private equity players to raise funds for the development of a commercial property on its 11.76-acre land in Gurugram. The developer had recently bought the Gurugram land for about Rs 1,600 crore.

India’s largest realty firm could dilute up to 50 percent stake in this 2.5 million sq ft commercial project, DLF’s Chief Financial Officer Saurabh Chawla said.

In February this year, DLF had bought this land for Rs 1,496 crore in an e-auction conducted by the Haryana State Industrial and Infrastructure Development Corporation. After including the stamp duty, the total purchase cost came to about Rs 1,600 crore.

We bought this land in Gurugram as it was close to DLF Cyber City and was strategic for the company. Now, we are looking for a partner for development of this project.
Saurabh Chawla, Chief Financial Officer, DLF Ltd.

The company is in talks with many private equity funds and expects to close this deal by September, Chawla said. He declined to name the private equity players with whom discussions were taking place as well as the amount the company looks to raise.

“This deal would be similar in nature as we did with investment firm GIC for housing projects in Delhi,” he said.

In September 2015, Singapore’s sovereign wealth fund GIC had invested about Rs 2,000 crore in DLF’s two housing projects in the national capital.

DLF, a leading developer of commercial properties in the country, has over 30 million sq ft of rental assets, mostly office space, which it owns directly as well as through joint-venture with GIC.

Its promoters had in December last year sold 33.34 percent stake in DLF Cyber City Developers Ltd. to GIC for Rs 9,000 crore. DLF holds 66.66 percent 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 or to DCCDL as investment properties. It also has the flexibility to hold the property as investment property earning lease rentals.

DCCDL group currently 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.

Also read: DLF Says Will Build Fewer Projects, Focus On Clearing Inventory