Realty major DLF has received Rs 1,992 crore from Singapore’s sovereign wealth fund GIC, thereby completing the deal to sell 50 per cent stake each in two upcoming projects in the national capital.
The country’s largest realty company had in September this year had announced the stake sale in the two projects to GIC. Last month, the fair trade regulator CCI had approved joint venture with GIC for these two projects in central Delhi.
“…subsequent to receipt of CCI approval and having met other pre-closing conditions, the funding for the above said transaction has been concluded on December 23, 2015 with the receipt of Rs 1,992 crore from GIC,” DLF said in a filing to the BSE.
The company would use this fund to boost cash flow and reduce debt, which stood at Rs 22,520 crore in September end.
DLF’s share price today closed at Rs 116.10 apiece on the BSE, up 2.38 per cent.
In September, DLF had announced that its arm DLF Home Developers and GIC have entered into a joint venture for two upcoming projects located in Central Delhi. “GIC will invest approximately Rs 1,990 crore,” it had said.
DLF has raised private equity at project levels after a gap of 4-5 years.
These two upcoming projects are adjacent to its existing project Capital Green at Moti Nagar here.
With sluggish property market in last 2-3 years, DLF had announced in February that it would raise over Rs 3,000 crore through divestment or joint ventures in certain projects to improve cash flow and reduce debt.
“We hope that this investment is a beginning of a new relationship with GIC at the project level. We look forward to working together with GIC in many projects, both residential and commercial,” DLF Senior Executive Director Finance Saurabh Chawla had said on the GIC deal.
GIC is a leading global investment firm with well over USD 100 billion in assets under management, while DLF is leading realty firm with a land bank of 300 million sq ft.