DLF’s rental arm to buy Hines’ stake in One Horizon Center for Rs 780 crore – ET RealEstate

NEW DELHI: Realty major DLF on Friday said its rental arm DCCDL has entered into an agreement to acquire the stake of US-based Hines in a premium commercial project in Gurugram for Rs 780 crore.

DLF Cyber City Developers Ltd (DCCDL), the joint venture firm of DLF and Singapore’s sovereign wealth fund GIC, has entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which owns and operates ‘One Horizon Center‘.

“The purchase consideration for this acquisition is approximately Rs 780 crore, subject to customary closing adjustments,” a regulatory filing said.

Hines has around nearly 52 per cent stake in the One Horizon Centre while the rest is with DCCDL. DCCDL has the first right of refusal with respect to acquiring Hines’ stake.

The commercial tower One Horizon Center has leasable area of about 8,13,000 square feet offering high-end Grade A office spaces along with complementary retail space.

The acquisition is subject to customary conditions to closure and is expected to be consummated in the next quarter.

Sriram Khattar, MD-Rental Business, DLF, said the company has acquired complete ownership of this asset.

“This acquisition adds another trophy asset to our strong rental platform. We believe that this acquisition will be highly value accretive for us and will add approximately Rs 150-160 crore of rental revenues annually,” Khattar said.

Post acquisition, the DCCDL platform will have about 34 million sq ft of operational rental portfolio.

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

This deal included sale of 33.34 per cent 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.

DLF holds 66.66 per cent stake in DCCDL while GIC has the rest.

DCCDL had reported a 15 per cent rise in its rental income last fiscal at Rs 3,006 crore on strong demand for quality office and retail spaces.



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DLF pre-leases 7.7 lakh sq ft space in Chennai to Standard Chartered GBS – ET RealEstate

NEW DELHI: Realty major DLF‘s rental arm has given on lease 7.7 lakh sq ft office space to Standard Chartered GBS in an upcoming commercial tower in Chennai to be constructed at a cost of around Rs 450 crore, a senior company official said on Wednesday. DLF Cyber City Developers Ltd (DCCDL), which is a joint venture between DLF and Singapore sovereign wealth fund GIC, has leased the space in its commercial project ‘DLF Downtown’ at Taramani in Chennai being developed with a total investment of Rs 5,000 crore.

“We have signed an anchor leasing deal with Standard Chartered GBS for our upcoming office building at DLF Downtown,” DLF’s Managing Director (Rental Business) Sriram Khattar told .

Khattar said this is one of the largest office space leasing deals in recent times.

“We will be developing a built-to-suit office building of 10 lakh sq ft leasable area in this project. We have pre-leased 7.7 lakh sq ft space to Standard Chartered GBS as an anchor tenant. It is an endorsement of our quality development and project site,” he said.

The construction of the prime office tower is expected to start in January 2021 and will be completed in 36 months, Khattar said, adding that the total cost would be around Rs 400-450 crore.

Standard Chartered Bank’s wholly-owned subsidiary Standard Chartered Global Business Services (GBS) office in DLF Downtown will be its largest campus globally. It may take the remaining space in this 10 lakh sq ft building at a later stage.

Asked about the rental, he declined to comment.

But, property consultants said the leasing deal could have been struck at Rs 85-90 per sq ft per month, generating an annual rental income of about Rs 85 crore.

“We welcome Standard Chartered GBS to our family and will do our best to develop a landmark building while ensuring the safety and wellness of SCB employees. We will continue our passionate journey of providing safe and sustainable workspaces matching global standards,” Khattar said.

He said India’s office market is slow currently with corporates looking to conserve cash and deferring expansion plans, but the sentiments will improve from early next year.

Amit Grover, Executive Director, DLF Offices, said, “This strategic partnership is a testament to the success of our vision of new-age workplaces.”

DLF Downtown project is spread over 27 acres and has a total leasable area of 68 lakh sq ft, largely office space with some retail portion. Around 25 lakh sq ft built-up area is under construction in this project.

In December 2017, DLF had formed a joint venture with GIC after its promoters sold their entire 40 per cent stake in the 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 the DCCDL.

At present, the DCCDL has 33 million sq ft of office and retail portfolio, generating a total rental income of Rs 3,500 crore annually.



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