DLF promoters start divestment in rental arm

New Delhi: India’s largest realty firm DLF has initiated the process to sell promoters’ 40 per cent stake in its rental arm, a deal estimated at between Rs.12,000 and Rs.14,000 crore.

DLF had in October last announced that its promoters will sell their stake in the DLF Cyber City Developers Ltd (DCCDL), which holds the bulk of office and retail complexes.

The realty firm would continue to own remaining 60 per cent stake in DCCDL.

According to sources, DLF’s bankers have circulated the information memorandum to 18-20 global institutional investors that are keen to purchase this stake.

Blackstone, Singapore’s sovereign wealth fund GIC, Canada Pension Plan Investment Board, Brookefield, Abu Dhabi Investment Authority and Qatar Investment Authority are among the prospective buyers, they added.

As per the memorandum, DLF Cyber City Developers Ltd (DCCDL) has about 25-26 million sq ft of leased commercial space with an annual rental income of about Rs.2,250 crore. DCCDL also has 20 million sq ft of future development potential, sources said.

The equity value of this transaction is pegged at Rs.12,000-Rs.14,000 crore, sources said. Promoters, KP Singh and family, will reinvest a significant part of the amount realised from sale into DLF. In February, DLF’s Senior Executive Director Finance Saurabh Chawla had said that the company is targeting to complete this deal by July. DLF has a land bank of 281 million sq ft, of which 37 million sq ft is under construction. — PTI