DLF and Ridgewood have realigned their shareholding arrangements and joint ventures. This will help them develop seven residential projects spread over Chennai, Bengaluru, Kochi and Indore. Speaking to Bloomberg TV India , DLF CEO Rajeev Talwar says the arrangement was more of a division of responsibilities so that the two companies can focus on project completion and business growth. DLF is also in the process of selling 40 per cent stake in DLF Cyber City, which can fetch up to $2 billion, he said. Excerpts:

What does the new agreement mean for DLF? What’s the outlook going forward?

It means that each (Ridgewood and DLF) will be designated separate projects and those will be developed by the entity assigned to develop them. Of course, the existing commitments to all customers will be honoured by each of the two entities. So to that extent, it is a division of responsibilities and a more focused growth and project-completion arrangement.

What will be the exact realignment in the shareholding pattern in the JVs?

Each one of these entities will get certain numbers of projects, and develop them. And future developments in those projects are also to be looked by the entity assigned to do so. But hopefully, the entities will make their own investment in development of these individual projects and also reap the returns from those projects.

What’s the rationale behind this arrangement? How much will you develop and how much will be done by the other company?

For instance, in Bengaluru, whatever commitments have been made and whatever we have developed till now, those customers will continue to be served and provided for by the joint venture partner. And the future development will be done by them. So basically, it should lead to a leaner structure, which would be more focused towards delivery and development. And they will have their own contractors. Similarly, we will continue to develop the properties in Kerala.

In case of Chennai OMR, whatever we have developed till now, it will be looked after by Ridgewood in future and they will develop the next phase also. Development should get more focused, get expedited and delivery must be much quicker than before.

What will the 40 per cent stake in DLF Cyber City fetch?

They are trying to get the best valuation. It can go anywhere up to $2 billion. Let’s wait and see. How do you value the asset, what kind of shareholding is offered, what kind of money will come in and how will it be disbursed further? I don’t think anyone can comment on the actual numbers now.