DLF completes restructuring of JVs with Blackstone-led Ridgewood Holdings

DHDL had diluted 49% stakes in seven residential projects

Realty major DLF on Wednesday said it has completed the restructuring of its joint ventures with global investment firm Blackstone-managed Ridgewood Holdings, which had invested Rs 1,481 crore in seven housing projects in 2007.

DLF's subsidiary DLF Home Developers (DHDL) had diluted 49 per cent stake in these seven residential projects located in Chennai, Bengaluru, Kochi and Indore to a Merrill Lynch & Co entity Ridgewood Holdings, now managed by Blackstone.

The country's largest realty firm had in July last year announced restructuring of its joint venture looking at the market scenario and to concentrate on select projects in certain micro markets.

It was jointly decided with the investor to realign the current shareholding arrangement in the JV companies in order to maintain continued focus on future development of various projects.

"Consequently, with the realignment of the current shareholding in the JV companies, DHDL ceases to hold any stake in DLF Southern Homes Pvt and DLF Homes Rajapura; while DLF Southern Towns and DLF Garden City Indore have become wholly owned subsidiaries of DHDL," DLF said in a filing to the BSE.

However, the company said that the completion and handing over of all the launched projects in the cities of Bengaluru, Chennai, Kochi and Indore will be its responsibility as per contractual arrangements.

As per the restructuring, DLF and Ridgewood Holdings had divided five undeveloped land parcels of about 500 acres in Bengaluru and Chennai. Two projects in Kochi and Indore were already developed by the partners.

DLF would now have 100 per cent stake in two land parcels in Chennai while Ridgewood Holdings would have full ownership of two land parcels in Bengaluru and one in Chennai.