DLF rose 5.26% to Rs 238 after the company's subsidiary DLF Cyber City Developers (DCCDL) signed agreement with Hines to acquire 51.8% stake in Fairleaf Real Estate for 780 crore.
In a BSE filing made during market hours today, the realty major said that DCCDL currently held 48.2% stake in Fairleaf Real Estate. Fairleaf is a joint venture company, with funds managed by Hines, which owns and operates One Horizon Center, Gurugram.
One Horizon Centre is an asset forming part of a larger mixed-use development located in DLF 5, Gurugram. The leasable area of the property is approximately 8,13,000 square feet offering high-end Grade A office spaces along with complementary retail space.
DCCDL has entered into a securities purchase agreement with Hines to acquire its 51.8% stake in Fairleaf for a purchase consideration of approximately Rs 780 crore, subject to closing adjustments.
The transaction is expected to be consummated in the next quarter subject to requisite closing actions, post which Fairleaf will become a wholly-owned subsidiary of DCCDL.
Sriram Khattar, MD-Rental Business, DLF commented, "We are delighted to acquire complete ownership of this marquee asset. This acquisition adds another trophy asset to our strong rental platform. We believe that this acquisition will be a highly value accretive for us and will add approximately Rs 150-160 crore of rental revenues annually. Post completion of this acquisition, the DCCDL platform will have approximately 34 msf of operational rental portfolio."
He added, "We are pleased to conclude this successful partnership with Hines and hope that our continued relationship will lead to development of more projects in the future by leveraging on our respective strengths."
DLF is a real estate developer primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties. The company has developed approximately 153 real estate projects and developed an area of approximately 330 million square feet.
The company's consolidated net profit dropped 37.1% to Rs 114.10 crore on a 6.2% decline in net sales to Rs 1,609.82 crore in Q2 September 2020 over Q2 September 2019.
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