The Hindu Business Line : DLF sells 49% in housing projects to Merrill arm

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DLF sells 49% in housing projects to Merrill arm

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New Delhi, Nov. 19 Real estate company DLF Ltd today said it has sold 49 per cent stake in eight residential project SPVs to private equity investors for a total consideration of Rs 1,675 crore. A Merrill Lynch & Co entity has bought 49 per cent equity in seven residential projects in Chennai, Bangalore, Kochi and Indore, for Rs 1,481 crore.

The mid-income housing projects would be developed in about 7-8 years. The company — headed by billionaire Mr K.P. Singh — has also diluted 49 per cent stake at a premium, in another middle-income housing project in Panchkula, Haryana, to Brahma Investments for Rs 194 crore.

“DLF continues to remain focused on keeping its net economic interest in homes business to a 10-year development horizon. These two transactions will help DLF unlock its investments in land resource for the eight projects,” Mr T.C. Goyal, Managing Director of the company, said adding that it would also result in positive NAV accretion.

A company official said that the move was in sync with DLF’s stated intent of keeping 500-550 million sq ft of development over a 10-year timeframe. “For residential, we have a long-term target of 350 million sq ft, but currently hold 480-odd million sq ft under development. Even after this transaction, we will have about 405 million sq. ft. under residential development,” he said.