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DLF inks JV deal with British firm

DLF Universal enters into a JV with UK-based Laing O'Rourke for infrastructure projects.

india Updated: Nov 02, 2011 17:31 IST

Real estate company DLF Universal entered into a joint venture with UK-based Laing O'Rourke for infrastructure projects, and the new entity would take off with an initial investment of Rs 500 crore.

"We have formed a 50:50 JV company, DLF Laing O'Rourke, which will make an initial investment of close to Rs 500 crore to be further enhanced over several months," DLF Vice Chairman Rajiv Singh told reporters on Wednesday.

Both the partners would contribute Rs 250 crore each towards the initial corpus, he added.

The JV will initially execute on-going large projects of DLF across the country, and later would bid for infrastructure projects in the field of express highways, airports and power plants.

Besides, the JV would also set up dedicated funds for infrastructure projects with a corpus of $1.5 billion.

"The aim of such an exclusive fund would be to extend the capital needs to executive agencies involved in infrastructure project," Singh said, putting a rider that such funds would be extended to only BoT projects.

The fund will become operational by next fiscal, he said.

Provisions would also be there for international agencies and institutional investors to pump money in the fund, besides contribution from the JV.

"We will take help of a leading merchant banker for this purpose," he added.

The JV also plans to aggressively bid for modernisation of airport in the country.

"We have lot of experience in executing airport projects. We will definitely bid for airport projects," Laing O'Rourke Chairman Ray O'Rourke said.

Meanwhile, DLF plans to foray into hospitality sector through construction of hotel projects.

Confirming this, company's board chairman KP Singh said discussions are on with many entities to develop a partnership model in this regard, but declined to give further details.

First Published: Feb 01, 2006 17:06 IST