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DLF arm ties up with GIC for Delhi projects


Singapore’s sovereign wealth funds GIC and DLF Home Developers, a subsidiary of real estate developer DLF, have entered into a joint venture to invest in two upcoming projects in Delhi’s Moti Nagar, according to a report published in the media.

According to a press release, DLF is also working on a REITs issue towards the end of the year as part of the fund-raising plan. Bankers said lifting of Sebi’s ban on fund-raising by the company and the Government’s clarification on minimum alternate tax (MAT) on portfolio investors would buoy the REITs plan although several clarifications are still required.

DLF has already sold stake in non-strategic ventures, including DT Cinema to PVR in a transaction valued at Rs 500 crore.

The joint venture with GIC will develop over five million square feet, including one million square feet in the fifth phase of Captital Greens and four million square feet on SIEL land. A source said land and construction would be DLF’s responsibility with the funds received upfront from GIC, once the Competition Commission clears the deal over the next two-three months.

The money raised by the DLF subsidiary would be utilised partly for debt reduction and partly for capital expenditure. The projects, currently focused on residential development, are expected to be launched in a year and will be developed in phases over a five-year period. DLF already has a few projects in Moti Nagar, most of which are running months behind schedule.


Saurabh Chawla, DLF’s Senior Executive Director for Finance, said, “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. Such project level investments shall lead to unlocking of embedded value in many of DLF’s development projects.”