DLF Transfers Mall Of India To DLF Cyber City For Rs 2,950 Crore
DLF has to pay Rs 8,700 crore to DLF Cyber City, the joint venture of DLF and GIC. It aims to settle those dues by September 2019 through transfer of rental assets and land parcels.
In a regulatory filing on Thursday, DLF said that the company has transferred its property, Mall of India in Noida, to subsidiary Paliwal Real Estate Ltd. in the ordinary course of business at an arm's length consideration of Rs 2,950 crore--arrived on the basis of the valuation report of an independent valuer.
"This is in line with the company's stated objective of streamlining and consolidating the operations and holding structure of its rental assets," DLF said in the regulatory filing.
Mall of India is located in Sector 18, Noida, with a leasable area of 2 million sq. ft. It was developed at a cost of about Rs 2,000 crore.
According to people familiar with the matter, the transfer of Mall of India to a subsidiary firm has paved the way for selling this retail asset to DLF Cyber City to clear the dues.
DLF has 66.66 percent stake in DLF Cyber City, while GIC owns 33.34 percent.
At present, DLF Cyber City holds around 30 million sq. ft of rent-yielding commercial assets, largely in Gurugram, Haryana, with annual rental income of over Rs 2,500 crore.
The DLF Cyber City joint venture was formed in December 2017 when DLF promoters sold their entire 40 percent stake in the entity for nearly Rs 12,000 crore.
The deal included sale of 33.34 percent stake in DLF Cyber City to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DLF Cyber City.