DLF settles entire Rs 8,700 cr amount payable to joint venture with Singapore-based GIC

DLF holds a 67 percent stake in DCCDL, while Singapore's sovereign wealth fund GIC holds 33 percent

Press Trust of India October 03, 2019 07:30:43 IST
DLF settles entire Rs 8,700 cr amount payable to joint venture with Singapore-based GIC
  • With the settlement of these dues, the company said it has completed the exercise of transforming its balance sheet and consolidation of all rental assets under the DCCDL

  • DLF holds a 67 percent stake in DCCDL, while Singapore's sovereign wealth fund GIC holds 33 percent

  • At the end of 2018, DLF owed Rs 8,700 crore to DCCDL and the amount payable came down to Rs 5,600 crore by 1 July 2019

New Delhi: Realty major DLF has settled the entire Rs 8,700 crore amount payable to DLF Cyber City Developers Ltd (DCCDL), its joint venture with Singapore-based GIC, by transferring various completed commercial properties and land parcels as well as a cash payment.

With the settlement of these dues, the company said it has completed the exercise of transforming its balance sheet and consolidation of all rental assets under the DCCDL.

DLF holds a 67 percent stake in DCCDL, while Singapore's sovereign wealth fund GIC holds 33 percent.

At the end of 2018, DLF owed Rs 8,700 crore to DCCDL and the amount payable came down to Rs 5,600 crore by 1 July 2019.

In a filing to the BSE on Wednesday, DLF said the "inter-company payables have now been fully settled".

As part of the settlement, DLF has transferred its shareholding in its arm DLF Info Park Developers (Chennai) at an enterprise value of Rs 1,000 crore. This subsidiary holds nearly 27 acres of land.

DLF settles entire Rs 8700 cr amount payable to joint venture with Singaporebased GIC

Reuters

That apart, it has transferred its shopping mall in Saket, South Delhi for an enterprise value of Rs 1,012 crore.

DLF also transferred its shareholding and compulsorily convertible debentures (48.2 percent of the fully diluted capital) in Fairleaf Real Estate Pvt Ltd, a joint venture company that owns One Horizon Center commercial project in Gurugram, for an enterprise value of Rs 1,700 crore.

According to sources, DLF has settled around Rs 2,000 crore through cash.

"This has been a major restructuring exercise and has now resulted in a larger alignment of the Group's rental assets under the DCCDL platform," DLF said.

After these transfers and consolidation of commercial assets, DLF said DCCDL is positioned even more strongly to continue its growth journey.

"The total settlement of receivables (net of values received for transfer of shareholding/dividend received from DCCDL and other inter-company adjustments) will result in an increase in the company's net debt by only Rs 475 crores approx," the filing said.

DLF said it has completed the final chapter of its balance sheet transformation.

Earlier, DLF had transferred Mall of India project at Noida, Uttar Pradesh to DCCDL at an enterprise value of Rs 2,950 crore. The realty firm had also transferred 3.05 acres of land parcel at Gurugram, Haryana.

DCCDL currently holds nearly 30 million sq ft of rent-yielding commercial assets, largely in Gurugram, with an annual rental income of about Rs 3,000 crore.

In December 2017, DLF entered into this joint venture with GIC when DLF promoters sold their entire 40 percent stake in DCCDL for nearly Rs 12,000 crore.

This deal included the sale of 33.34 percent stake in the DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DCCDL.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Monetising assets: DLF sells Saket shopping mall to its wholly-owned arm for Rs 904 crore
Business

Monetising assets: DLF sells Saket shopping mall to its wholly-owned arm for Rs 904 crore

Move in line with the strategy to structure ownership of existing assets in order to facilitate potential monetisation either through REITs or otherwise in future

DLF to sell 49% stake in upcoming commercial project at Gurugram to US-based Hines for about Rs 900 cr
Business

DLF to sell 49% stake in upcoming commercial project at Gurugram to US-based Hines for about Rs 900 cr

DLF has already signed a term sheet with Hines to develop a prime commercial project on 11.76 acre land parcel in Gurugram that it bought for nearly Rs 1,500 crore through e-auction conducted by the Haryana government in February.

DLF to raise Rs 3,200 crore via QIP in a bid to become debt-free; issue subscribed two times
Business

DLF to raise Rs 3,200 crore via QIP in a bid to become debt-free; issue subscribed two times

DLF launched its qualified institutional placement (QIP) offering up to 17.3 crore shares to investors