DLF, the country’s largest realty firm, has acquired the 50 per cent stake of UK-based Laing O’ Rourke in their construction joint venture DLF Laing O’ Rourke for about Rs. 50 crore.
In October last year, DLF had said that it will buy out LOR’s stake in DLF-LOR, a 50:50 JV between the two firms set up in early 2006 to execute various mega projects of DLF.
According to sources, negotiations between the two firms have been completed and an agreement has been signed where DLF would acquire all of LOR’s shareholding in the joint venture for about Rs. 50 crore.
When contacted, the company spokesperson said that DLF had already announced the development. However, he declined to comment on valuation of the deal citing confidentiality clause.
The buy-out would help DLF in enhancing project execution capabilities and achieve its construction delivery goals in the most cost and time efficient manner.
The joint venture firm, which at present has nearly 1,000 employees, had posted a turnover of Rs. 760 crore in 2008-09 fiscal. It was executing DLF’s 17 projects across the country.
“For better integration and strengthening execution, DLF is buying out Laing O’ Rourke’s stake in DLF-LOR JV,” the company has said in a statement.
Sources said that LOR would continue to provide expert advice to DLF on construction related issues.
DLF currently has 423 million sq ft of developable area in hand. It plans to build one lakh affordable houses that would cost less than Rs. 20 lakh in major cities.
Recently, DLF has restructured its realty business by dividing the entire operation into two - annuity (rentals) and development company.
Under the restructuring exercise, DLF Cyber City Developers, a subsidiary of DLF, would emerge as a group’s flagship company for holding rental assets - offices, malls, facilities management and utilities.
On the other hand, the real estate development vertical was divided into three divisions focusing on Gurgaon market, super metros and the rest of India.