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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HDFC lends Rs 2,600 crore to DLF & Hines’ joint venture project in Gurugram – ET RealEstate

NEW DELHI: HDFC has extended construction loan worth Rs 2,600 crore to Hines and DLF‘s joint venture which plans to develop a commercial project in Gurugram, the company said in a media release.

In its investor’s presentation recently uploaded in the BSE, DLF had said that construction credit lines have been sanctioned while approvals are underway and construction of the project will commence thereafter. It is scheduled to be complete in 2023-24.

In 2018, DLF had purchased the commercial land parcel spread across 11.76 acres through an auction process conducted by HSIIDC for about Rs 1,500 crore, according to media reports.

The joint venture was formed in March 2019 when DLF announced sale of 33 per cent stake to Hines in the commercial project. DLF’s subsidiary DLF Home Developers and Hines group firm Green Horizon Trustee had entered into a JV where the latter has an option to increase its stake to 49 per cent.

DLF had reported a consolidated loss of Rs 71.52 crore in the first quarter of the financial year 2020-21. Its profit after tax (PAT) stood at Rs 413.94 crore during the corresponding quarter previous fiscal, the company had said in its BSE filing.



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