DLF to invest Rs 825 crore in Gurugram
The realty major will acquire 29 acres of land as part of the deal.
- Republic Business
- 2 min read
;'%3e%3cpath%20d='m8,15.99c4.41,0,7.99-3.58,7.99-7.99S12.41,0,8,0,0,3.59,0,8s3.58,7.99,7.99,7.99Z'%20style='stroke:%23fff;%20stroke-miterlimit:10;%20stroke-width:.02px;'/%3e%3cpath%20d='m3.08,3.37l3.82,5.11-3.84,4.15h.87l3.37-3.64,2.72,3.64h2.94l-4.04-5.39,3.58-3.87h-.86l-3.1,3.35-2.5-3.35h-2.94Zm1.27.64h1.35l5.97,7.99h-1.35l-5.97-7.99Z'%20style='fill:%23fff;'/%3e%3c/g%3e%3c/svg%3e){kind=small}
Deal for land: Realty major DLF Ltd is set to buy 29 acres of land in Gurugram in a deal exceeding Rs 825 crore, as per sources.
The company, which is an acronym for Delhi Land & Finance, is a commercial real estate development company founded by Chaudhary Raghvendra Singh in 1946.
The land will be purchased from IREO for a housing project, which was mortgaged by the realty firm along with some financial institutions.
Notably, the company had taken over bad loans worth Rs 825 crore related to the land.
Advertisement
DLF has plans to develop a group housing project on the acquired land in Golf Course Extension in the city.
The company also informed exchanges on Thursday of an agreement with lenders Standard Chartered Bank, Singapore Branch, DB International (Asia), Singapore and Deutsche Investments India (lender/bondholder) to purchase non-convertible, redeemable bonds issued by IREO, which is the bond issuer.
Advertisement
DLF MD Ashok Tyagi addressed analysts, saying, ''We have been working with the two lenders and the developer for almost 12 months trying to structure this transaction. Today, we have signed the documents to acquire the debt from these two lenders."
It may take over 12 months to bring this project to the market, he added, but said it will be a very big addition to the portfolio.
''Rs 825 crore was the outstanding loan that the developer had with these two banks. Actually, the loan was about Rs 1,200 crore. The bankers agreed to take a haircut as a one-time settlement."
''So, Rs 825 crore is what we have bought the loan at from the bankers,'' Tyagi said.
DLF is in the process of finalising an agreement with the developer for acquiring the 29 acres of land with the requisite FAR, he further noted.
''Therefore, the consideration would be slightly higher than Rs 825 crore, which is the price at which we have bought these bonds from the current bond holders. Now, we are the lender,'' Tyagi said.
In the filing, DLF said the company intends to acquire the overall rights and interest of the land parcel admeasuring 29 acres having an estimated development potential of up to 7.5 million square feet.
(With agency inputs)