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DLF enters into an agreement to acquire land parcel in Gurugram for ₹825 crore
The land parcel has a development potential of 7.5 mn sq ft, the company said in a regulatory filing
Real estate major DLF Ltd has entered into an agreement to acquire a 29-acre land parcel in Gurugram for ₹825 crore. The land parcel has a development potential of 7.5 mn sq ft, the company said in a regulatory filing.
In the filing, DLF said the company, directly or through its affiliates, intends to acquire overall rights and interest in a land parcel measuring 29 acres having estimated development potential of up to 7.5 million square feet. Out of the identified land, an area measuring 25 acres forms part of the mortgaged land.
"Accordingly, the company has entered into an agreement with the bond holder, wherein the company will purchase these bonds at a negotiated consideration of ₹825 crore and would assume the rights of the bond holder."
DLF said the company is purchasing the bonds as a strategic investment and would be looking at rights under the bonds documentation including enforcement, settlement with the bond issuer, including its affiliate(s) after following due process of law and approvals and sanctions as may be required.
The company also said it would acquire rights and interest in the remaining 4 acres of land through separate binding agreements with the bond issuer and its certain land-owning companies.
In a regulatory filing on Jan 25, DLF said it has entered into an agreement with Standard Chartered Bank, Singapore Branch, DB International (Asia), Singapore and Deutsche Investments India (lender/bond holder).
"We have been working with the two lenders and the developer for almost 12 months trying to structure this transaction. Today, we have signed the documents to acquire the debt from these two lenders. It may take more than 12 months to bring this project to the market but it will be a very big addition to the portfolio," DLF MD Ashok Tyagi said during a conference call with analysts.
" ₹825 crore was the outstanding loan that the developer had with these two banks. Actually, the loan was about ₹1,200 crore. The bankers agreed to take a hair cut as a one-time settlement.
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"So, ₹825 crore is what we have bought the loan at from the bankers," Tyagi said.
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He said the company is in the process of finalizing an agreement with the developer for acquisition of the 29 acres of land with the requisite FAR.
"Therefore, the consideration would be slightly higher than ₹825 crore, which is the price at which we have bought these bonds from the current bond holders. Now, we are the lender," Tyagi said.
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