Industry

DLF arm to buy out Hines in Gurugram unit for ₹780 crore

Realty major DLF’s rental arm DCCDL has agreed to acquire the entire 52% stake of U.S.-based Hines in a premium commercial project in Gurugram for ₹780 crore.

In a regulatory filing, DLF said its joint venture firm DLF Cyber City Developers Ltd. (DCCDL) had “entered into a securities purchase agreement with funds managed by Hines for acquisition of their stake in Fairleaf Real Estate, which owns and operates ‘One Horizon Center’.”

DCCDL is a joint venture firm of DLF and Singapore’s sovereign wealth fund GIC. DLF holds 66.66% stake in DCCDL while GIC has the rest.

“The purchase consideration for this acquisition is approximately ₹780 crore, subject to customary closing adjustments,” DLF said.

‘Income of ₹150-160 cr.’

The commercial tower ‘One Horizon Center’ has a leasable area of about 8,13,000 sq. ft. The acquisition is expected to be completed in the next quarter.

DLF’s MD-Rental Business, Sriram Khattar, said, “We will fund this acquisition from internal accruals and bank loans.” The deal is likely to be completed by February, he said, adding that the firm would get an additional annual rental income of ₹150-160 crore after this deal is concluded.

Market sources said the deal had been struck at an enterprise value of ₹2,000 crore. The project has debt of ₹500 crore. Post acquisition, DCCDL will have 34 million sq. ft of operational rental portfolio.

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Printable version | Mar 3, 2021 8:21:04 AM | https://www.thehindu.com/business/Industry/dlf-arm-to-buy-out-hines-in-gurugram-unit-for-780-crore/article33426832.ece

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