Termed as one of the biggest realty deals in the country, DLF, on Monday, announced that it had entered into a deal with Lodha Developers for sale of 17 acres of prime land in Mumbai for a whopping Rs.2,700 crore, almost four times the amount the company paid for the land to the National Textile Corporation (NTC) in 2005.
It decided to sell this piece of land as part of the strategy to exit from non-core business.
In a statement issued here, DLF said the company had sold the entire stake in its arm Jwala Real Estate, which owns this land at Worli in Mumbai, for an enterprise value of about Rs.2,700 crore.
Separately, Lodha Developers said it had entered into an agreement with DLF to acquire the land.
The acquisition is for a consideration of Rs.1,200 crore for both equity and debentures of the company.
In addition, Lodha is expected to take over about Rs.1,500 crores of liabilities that Jwala has incurred for the development since it purchased the property from NTC.
The deal is likely to be completed in October.
Although DLF has earned Rs.2,000-crore proft on this deal, the valuation is lower than Indiabulls' deal in 2010 for the 8.39 acres of NTC land for Rs.1,580 crore.
