DLF finalises Rs 825 crore acquisition deal for 29-acre land in Gurugram

DLF's Gurugram acreage acquisition: DLF, a leading real estate company, has finalised an agreement to acquire a 29-acre land parcel in Gurugram for a sum of Rs 825 crore, as disclosed in a regulatory filing. The land, with a development potential of 7.5 million square feet, is part of a strategic investment for DLF.

The acquisition involves the purchase of bonds from Standard Chartered Bank, Singapore Branch, DB International (Asia), Singapore, and Deutsche Investments India, the current bond holders. The outstanding loan of Rs 825 crore, originally totalling Rs 1,200 crore, has been settled through this agreement, with the lenders accepting a haircut.

FAR negotiations

DLF plans to acquire the rights and interest in the 29-acre land through the purchased bonds, with an additional agreement in progress for the remaining 4 acres. The company is also in the process of finalising an agreement with the developer to secure the land with the requisite Floor Area Ratio (FAR).

During a conference call with analysts, DLF MD Ashok Tyagi mentioned that the entire transaction, including bringing the project to the market, might take more than 12 months, according to media reports. Despite the outstanding loan being Rs 1,200 crore, DLF acquired it for Rs 825 crore, positioning itself as the lender in this transaction. Tyagi highlighted that the final consideration for the land acquisition would be slightly higher than Rs 825 crore, reflecting the negotiated bond purchase price.