Realty major DLF Tuesday announced sale of 33 per cent stake in its upcoming commercial project in Gurugram to US-based Hines, in a deal size estimated at around Rs 650 crore.
In October last year, DLF had signed a term sheet with Hines to develop a prime commercial project on 11.76 acre land parcel in Gurugram that it bought for nearly Rs 1,500 crore through e-auction conducted by the Haryana government in February 2018.
The realty major's subsidiary DLF Home Developers Ltd (DHDL) and Hines group firm Green Horizon Trustee have entered into a joint venture (JV) to develop a high-end commercial project in Gurugram, the company said in a statement.
"DHDL will hold 67 per cent stake in the joint venture, while 33 per cent will be held by Hines. Hines has invested about Rs 500 crore in the first tranche," it added.
According to sources, DLF has struck this deal at a premium of about 25 per cent from the Rs 1,500 crore land value that it paid to the Haryana government.
Sriram Khattar, managing director (rental business), DLF, said, "We are excited about the JV with Hines, this is our second JV with them. With our joint experience, we shall work together to develop world-class buildings which will set new standards for commercial buildings in this part of the world.
Hines will initially own 33 per cent equity share of the JV with an option to increase its stake to 49 per cent.
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"The total investment by the joint-venture partners in this project is about Rs 1,900 crore in accordance with the independent valuation undertaken by a category-1 merchant banker," the statement said.
The project will be developed on 11.76 acre of land owned by the JV company. The land parcel is located across the highway to the existing business district of DLF Cybercity.
DLF and Hines entered into their first joint venture in 2008 to develop One Horizon Center in DLF-5 Gurugram. One Horizon Center is a marquee commercial development and is home to Fortune 500 multinationals.
Lee Timmins, CEO of Hines Eurasia, said, "Over the past 10 years, Hines and DLF have established a successful partnership, which has laid the foundation for us to come together again and expand the relationship to build world-class developments in Delhi NCR."
Hines MD and Country Head Amit Diwan said, "This is an excellent location that benefits from great connectivity by road and by metro. It is also in close proximity to social infrastructure like Cyber Hub, The Oberoi and Trident hotels."