DLF to Sell 40% Cyber City Stake for $2bn

Promoters of realty giant DLF K P Singh and his family have decided to sell their entire 40% equity in their flagship company in commercial space DLF Cyber City Developers (DCCDL) to Singapore-headquartered private equity firm GIC, formerly known as Government of Singapore Investment Corporation.

The statement issued by the company did not divulge the deal figure. Sources in the company pegged the deal size at around Rs 14,000 crore ($2 billion). At this price, DLF’s rental arm DCCDL could be valued at around Rs 35,000 crore.

The promoters will invest the proceeds from the sale back to the company. This will lead to increase their holding in DLF beyond 75%. At present, they hold 74.9% of the total paid-up capital.

However, statutorily, DLF will be required to issue fresh shares to reduce the promoters’ holding to 75%, which will further enable it to raise around Rs 4,000 crore. According to one estimate, this entire exercise will lead to a fresh capital infusion in DLF of around Rs 16,000 crore.

In DCCDL, the promoters’ hold 40% stake and the rest is owned by DLF. The real estate major is expected to use the money to retire a part of its debt of Rs 24,397 crore as on December 31, 2017. DLF has earned a net profit of Rs 559 crore on a revenue of Rs 6,429 crore.

The main income of DCCDL is rental from office complexes. DCCDL owns 26.8 million sq ft operational office and commercial space in Gurgaon, Chandigarh and Kolkata. Apart from Cyber City in Gurgaon, the company owns DLF City Centre, including Mall of India in Gurgaon, premium malls DLF Promenade (100%) and DLF Emporio (45%) in South Delhi. It owns 100% stakes in DLF Info City in Chandigarh and Kolkata.

Source : internet