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Singapore’s wealth fund GIC and DLF Home Developers Ltd, a wholly-owned subsidiary of DLF Ltd, have formed a projects-specific joint venture under which the former will invest ₹1,990 crore.
The partnership is for two upcoming projects located in Central Delhi, the Indian firm said in a statement issued here on Wednesday.
Without disclosing DLF’s contribution or the project size, the Indian firm said: “Both projects will be developed under DHDL.”
However, sources said that it will be a 50:50 venture. GIC is a leading global investment firm with over $100 billion in assets under management. The projects will be launched in the neighbourhood of DLF’s Capital Greens project in the national capital.
The investment is subject to meeting all statutory requirements and conditions.
The money will be utilised for debt reduction and capital expenditure, the source said, adding that the projects are expected to be launched in a year and developed over the next five years.
The move is in line with debt-ridden DLF’s strategy to sell stakes in projects by bringing in private equity investors.
DLF Ltd’s net debt rose marginally, by 3 per cent, to ₹21,598 crore at the end of the first quarter of financial year 2015-16 from ₹20,965 crore in the last quarter of 2014-15.
The net debt attributable to its development business arm DevCo was ₹7,598 crore while ₹14,000 crore pertained to rental arm (RentCo).
Post the announcement, the company’s shares on the BSE ended 3.40 per cent higher, at ₹109.60, on Wednesday.
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