Sovereign wealth fund GIC from Singapore and noted real estate developer DLF are currently working on building a new residential high-rise venture. This will be located in close proximity to central Delhi and the total saleable area here will be around 7 million sq. ft. The project is located at Moti Nagar where DLF had previously purchased two land parcels from the Lohia Group and DCM Shriram Consolidated back in the year 2007. The real estate developer had forked out a whopping Rs. 1, 582 crore for the property of 38 acres called Swatantra Bharat Mills and DCM Silk Mills. DLF has already built three phases of the Capital Greens residential project on this land along with a commercial tower.
The project will be the first residential venture from DLF under its new business blueprint of selling ready-to-move-in properties. GIC and DLF have already agreed towards establishing two JVs (joint ventures) for the development of commercial and residential projects on these land parcels. GIC is slated to invest around Rs. 1, 990 crore for these projects. The project is currently in its approval stages. DLF will build the project and sell it in multiple phases. The first phase of housing units will be ready within 3-4 years according to reports.
DLF has recently decided to sell only ready-to-move-in apartments at present. The company is concentrating on selling off its completed inventory worth close to Rs. 15, 000 crore on the books. This target will be accomplished over the next 3-4 years as per the company’s statement. DLF’s promoters have also sold off their stake of 33.34% in DLF Cyber City Developers Limited or DDCCDL, the rental division of the Group, for a whopping Rs. 8, 956 crore. This deal took place on the 26th of December, 2017 and the balance 66.66% is now held in DDCCDL by the company.
The DDCCDL platform has been tailored like a business trust or a private REIT in partnership with GIC. This means that DLF can sell commercial projects which are completed to this JV or other rent accruing commercial assets for this platform. It can also sell land parcels allocated for commercial development to this joint venture in the future. DLF has already zeroed in on specific land parcels and assets which will be transferred to DDCCDL and is holding discussions with GIC for this purpose. The entire procedure should be wrapped up by FY2018-19.
