Rs.11900 Cr. LARGEST PRIVATE EQUITY DEAL
The DLF board on Friday approved the sale of 40% equity held by DLF’s promoters in its rental arm DLF Cyber City Developers Limited (DCCDL) to an affiliate of Singapore-based GIC Real Estate for Rs.11,900 crore, terming it one of the largest private equity transactions in Indian real estate.
In a statement to the stock exchanges on Friday evening, DLF said the expected post-tax consideration from the deal is expected to be in excess of Rs.10,000 crore, a substantial portion of which will be invested in the company.
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Debt reduction
DLF’s net debt is close to Rs. 26,000 crore, hence the deal which has been in the works since late 2015 could come as a boost in the arm for its deleveraging plans. The proposed transaction, that will still need corporate and regulatory approvals, implies an enterprise value of Rs. 35,617 crore for DCCDL. Following the completion of the deal’s various aspects, DLF would hold 66.66% equity shares and GIC affiliate Reco Diamond shall hold 33.34% equity shares in DCCDL. GI
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C is Singapore’s sovereign wealth fund. DLF said the transaction shall create one of the leading platform play for rental properties, with rent yielding assets of 26.9 million square feet (msf ). Development potential
The portfolio, currently, has an under development pipeline of approximately 2.5 msf with further development potential of 19 msf, it added. Separately, the board also approved raising Rs. 2,500 crore through debt instruments such as non-convertible debentures, subject to a nod from its shareholders.
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