Realty major DlF on Sunday said it has entered into a joint venture with GIC to build rental assets in India after its promoters sold 33.34 per cent stake in the rental arm to the Singapore sovereign wealth fund for Rs 8,900 crore.
In the biggest deal in the Indian real estate sector, DlF promoters on Friday decided to sell their entire 40 per cent stake in a rental arm DlF Cyber City Developers ltd (DCCDl) for Rs 11,900 crore that included sale of stake to GIC as well as buyback of shares by the DCCDl.
With this deal, DlF stake in the DCCDl will increase to 66.66 per cent from 60 per cent while GIC will have 33.34 per cent stake.
In a joint statement, DlF and GIC announced that they have entered into a strategic partnership to develop a rental assets portfolio under the consolidated portfolio of the DCCDl.
DlF promoter group firms, DlF Cyber City Developers ltd and GIC Singapore affiliate Reco Diamond Pvt ltd executed the share purchase and shareholders agreement on Sunday, the realty major said.
This partnership would enable sustainable long-term growth of DCCDl’s rental business and creates an optimum structure to improve efficiency, with long-term capital for growth of the portfolio, the statement said.
Commenting on the JV, DlF Vice Chairman Rajiv Singh said the company has entered into yet another landmark transaction with GIC, which had invested Rs 2,000 crore in two housing projects in Delhi.
‘“Going forward, we expect this partnership to unlock significant embedded value in this portfolio and achieve scale and growth to unprecedented levels,’” he added.
lee Kok Sun, Chief Investment Officer, GIC Real Estate, said the company has enhanced its existing partnership with DlF.
‘“This portfolio comprises high-quality, income-generating assets which are located across India’s top-tier cities. In addition, there is a significant development potential within the portfolio. As a long-term investor, we believe in the growth potential of India and in strengthening relationships with like-minded partners,’” he added.
On August 25, DlF promoters decided to sell their entire 40 per cent stake in the DCCDl for Rs 11,900 crore. They would sell 33.34 per cent stake to GIC for Rs 8,900 crore while the remaining shares would be bought back by the DCCDl for Rs 3,000 crore.