DLF goes down to pay the joint venture to Rs 5,600 cr

New Delhi, August 4 () Realty major DLF has liquidated an amount of 3,100 million rupees payable to its joint venture with the Singapore investment firm GIC by transferring the Noida shopping center and some land plots.

At the end of 2018, DLF owed Rs 8,700 crore to DLF Cyber ​​City Developers Ltd (DCCDL), which is a joint venture between DLF and the Singapore GIC sovereign wealth fund.

DCCDL payable was reduced from Rs 8,700 million rupees to Rs 5,600 million rupees before July 1, 2019, DLF said in a presentation of investors.

Upon updating the settlement status, DLF said its Mall of India project in Noida, Uttar Pradesh, was transferred to DCCDL at an enterprise value of Rs 2,950 million. The real estate company has also transferred 3.05 acres of land plot in Gurugram, Haryana.

In December 2017, DLF entered this joint venture with GIC when DLF promoters sold their total 40 percent stake in DCCDL for almost Rs 12,000 crore.

This agreement included the sale of 33.34 percent of the participation in DCCDL to GIC for approximately Rs 9,000 million rupees and the repurchase of remaining shares worth Rs 3,000 million rupees by DCCDL.

DLF owns 66.66 percent, while GIC owns 33.34 percent in the DCCDL joint venture.

To settle the balance of Rs 5.600 crore, DLF has proposed selling the stake in its main Horizon Center commercial project in Gurugram for around Rs 850 crore. Apart from that, he plans to transfer his shopping center in Saket, in the south of Delhi, with a valuation of Rs 1,050 million rupees.

It is proposed to liquidate another one million rupees for transfer of DLF commercial land in Chennai.

The rest of Rs 2,700 million rupees would be liquidated by transferring properties in EEZ in Hyderabad and Chennai according to the previous contract with the signature of the DLF Assets Ltd group and the net cash payment of around Rs 700 crore.

According to the presentation, DLF aims to settle all its quotas with DCCDL in the second quarter of this fiscal year.

DCCDL currently owns almost 30 million square feet of commercial assets that generate income, largely in Gurugram, with annual rental income of around Rs 3,000 million.

Recently, DLF reported a two-fold increase in its consolidated net profit of Rs 414.72 rupees for the quarter ending in June compared to Rs 172.77 rupees in the same period of the previous year. However, total income decreased to Rs 1,540.95 million during the quarter from April to June of this fiscal year, from Rs 1,657.67 million in the corresponding period of the previous year. MJH ABM MR MR