DLF Cyber City Developers Limited, a rental arm of one of the prominent players in the real estate industry in India, DLF group, has completed the acquisition of a 51.8% stake in Fairleaf Real Estate Pvt Ltd for Rs, 779.40 crores.
Consequently, Fairleaf Real Estate, a private incorporated on April 4, 2007, has become a wholly-owned subsidiary of DLF Cyber City Developers (DCCDL). The real estate firm informed the Bombay Stock Exchange.
The company said in a statement that, “We are glad to inform that DCCDL has accomplished the acquisition of 51.8percent stake at a considerable amount of Rs 779.40 crore, resulting in Fairleaf real estate becoming a wholly-owned subsidiary of DCCDL with effect from February 18, 2021.”
About DLF Cyber City Developers
The DLF Cyber City Developers Ltd (DCCDL) is a joint venture of real estate player DLF and GIC, Singapore’s sovereign wealth fund. They entered into a strategic partnership to develop a rental asset portfolio. The partnership between the two firms ensures sustainable, long-term growth of DCCDL’s rental business, with long-term capital growth. It was one of the most significant private equity transactions in India’s real estate industry.
The DCCDL said in a statement that they had entered into a Securities Purchase Agreement in December 2017. With Hines’ funds for acquiring their stake in Fairleaf Real Estate Pvt Ltd, which now owns and operates Gurgaon’s upmarket commercial complex ‘One Horizon Centre.’
DLF Cyber City Developers Limited has exercised the first right of refusal to obtain Hines stake. The acquisition accomplished is subject to customary conditions and is expected to be complete by the next quarter.
Talking about the property, it has a leasable area of 8.13,000 sq feet and provides cutting-edge office spaces along with unique complementary retail space.
The shares of DLF on Friday were trading at Rs. 308.20, on BSE, which is 0.64 percent from its previous close. DLF is one of India’s largest publicly listed real estate developers, with a massive expansion of its residential, commercial, and retail space in nearly 15 states and 24 cities. It has developed around 153 real estate projects and created an area of almost 330 million sq feet.
Renowned to plan and construct some of the iconic cyber cities across the country with Grade-A IT parks, office spaces, and IT SEZs to suit the demand for bespoke amenities. Office space developed by DLF redefines the commercial pattern in India. With its notable presence in the office space, DLF is home to some high-end multinational companies like Accenture, Barclays, Genpact, Google, Samsung, IBM, Cognizant, CitiBank, to name a few. With the way of doing business changing every day, the company is dedicated to making it convenient for the working professionals by making the properties well-connected, integrated, and interactive to meet today’s demand.
Sriram Khattar, MD, Rental Business, DLF, said in a statement that, “We are delighted to acquired complete ownership of this marquee asset. This acquisition adds another trophy asset to our strong rental program. We believe that this acquisition will be highly valued accretive for us and will add approximately Rs 150 – Rs 160 crore of rental revenues annually. Post completion of this acquisition, the DCCDL platform will have approximately 34 million square feet of the operational rental portfolio.” In December 2017, DLF decided to enter into this joint venture with GIC when the DLF promoters sold their entire 40% stake in DCCDL, which valued at around Rs 12,000 crore. This deal happened between DLF and GIC included the sale of a 33.34 % stake in the DCCDL to GIC for Rs 9,000 crore and a buyback of the remaining shares, which had a value of nearly Rs 3,000 crore by DDCL. Currently, DLF holds a 66.66 percent stake in DCCDL, while GIC rests.