DLF And Hines Close The Deal At 51:49
DLF, a leading real estate company, has indicated its plans to enter into an agreement, with the US-based firm, Hines. Settlement is made, in terms of selling 49 percent of its stake, in an upcoming commercial project covering nearly 12 acre land, in Gurugram. The land was bought for nearly, Rs 1,500 crore, through Haryana Government’s e- auction, which took place in February.
This land plot was made available, by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for public acquisition. DLF’s subsidiary, called DLF Home Developers, entered into a non-binding settlement with Hines. The 51 percent of the funds will be managed by the subsidiary, and the rest will be under Hines influence.
The selling price set for the land plot, was highly-bid, surpassing all the benchmarks. Distinctly, the Company also showcased a consolidated net profit of Rs 373.21 crore, for its September end, second quarter, as against Rs 12.57 crore in the precedential year. Total income for the period improved to 32%, to Rs 2,304.90 crore.
The deal is expected to be in its finishing stages in December, according to the sources. The deal is set at a whopping 900 crores, making it the second joint project between the multinationals. “DLF has had a successful joint venture with Hines earlier, for its existing commercial development ‘One Horizon Centre’ in DLF-5 in Gurugram. One Horizon Centre is a marquee office building with Leed Platinum Rating,” said DLF.
In December last year, DLF entered into another joint venture with Singapore’s prime wealth fund provider, the Government of Singapore Investment Corporation (GIC). The mutual venture made its inception, when DLF sponsors sold complete 40 percent stake of DLF’s rental arm, DLF Cyber City Developers Ltd (DCCDL), for a sum of Rs 12,000 crore.
With the current 51:49, DLF and Hines Real estate project, it would entail development of more than 2.5 million sq ft of commercial space,” DLF said.