New Delhi: Realty major DLF Ltd Thursday reported an over 26-fold jump in consolidated net profit at Rs 374.74 crore for the September quarter and announced plans to form a joint venture with a fund managed by US-based Hines to develop a prime commercial project in Gurugram.
The board, at its meeting held Thursday, also evaluated the company's proposal to transfer properties worth Rs 6,500 crore to DLF Cyber City Developers Ltd (DCCDL) to settle its dues, the company said in a regulatory filing. DCCDL is its joint venture with Singapore's sovereign wealth fund GIC.
DLF's net profit stood at Rs 14.16 crore in the year-ago period. The profit rose sharply as it earned a profit of Rs 239.01 crore from associate companies and joint ventures.
Total income rose to Rs 2,304.9 crore in the July-September quarter of this fiscal from Rs 1,751.34 crore in the corresponding period of the previous year.
Last year, DLF formed a joint venture with GIC after its promoters sold a stake in the rental arm DCCDL to Singapore's investment firm for Rs 9,000 crore.
DLF has 66.66 per cent stake in the JV while GIC has the rest in DCCDL, which owns a bulk of the commercial assets of the realty group.
"DLF Home Developers, a wholly owned subsidiary of DLF, has entered into a non-binding term sheet with a fund managed by Hines (a privately owned global real estate investment, development and management firm) for forming a 51:49 partnership to develop a high-end commercial project on a land parcel of 11.76 acres situated in Gurugram," the filing said.
The transaction documents are under negotiation and subject to all other approvals as might be applicable.
In February this year, DLF bought 11.76-acre land in Gurugram for nearly Rs 1,500 crore in an e-auction conducted by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC).
To consolidate its rental/commercial assets within DCCDL and reduce the inter-company payables between the company and DCCDL, DLF said that its board considered a proposal to transfer its interest in certain commercial properties at an estimated enterprise value of Rs 6,000-6,500 crore.
The board asked the management to present the detailed proposals to the audit panel.
In August, DLF had said it would settle Rs 8,500 crore payable to DCCDL by 2020, mainly by transferring certain assets.
DCCDL currently holds about 27 million sq ft of rent-yielding commercial assets, largely in Gurugram, with annual rental income of about Rs 2,400 crore.
The JV was formed in December 2017 when DLF promoters sold entire 40 per cent stake in DCCDL for nearly Rs 12,000 crore. This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DCCDL.
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Updated Date: Nov 02, 2018 11:48:08 IST