DLF Acquires 29 Acres In Gurugram For Exclusive Housing Project - Know Deal Value And Other Details

dlf acquires 29 acres in gurugram for exclusive housing project – know deal value and other details

DLF Ltd, a real estate company, is set to acquire 29 acres of land in Gurugram from IREO to develop a housing project. This acquisition follows DLF taking over bad loans amounting to Rs 825 crore associated with the land. The housing project will be situated on Golf Course Extension in Gurugram, Haryana.

The land, previously mortgaged by IREO, is part of a strategic move by DLF, as outlined in a regulatory filing. The company has entered into an agreement with Standard Chartered Bank (Singapore Branch), DB International (Asia) (Singapore), and Deutsche Investments India, the lenders and bond holders. DLF will purchase non-convertible, redeemable bonds issued by IREO.

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As per the company’s filing on NSE, “The Company, directly or through its affiliates, intends to acquire overall rights and interest in land parcel admeasuring ~29 acres (‘Identified Land’) having estimated development potential of upto 7.5 million square feet, after following due process of law. Out of the Identified Land, land admeasuring ~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 the said Bonds at a negotiated consideration of ₹ 825 crore and would assume the rights of the Bond Holder”

During a conference call with analysts, DLF Managing Director Ashok Tyagi explained that the transaction had been in the works for nearly 12 months. The debt acquisition from the lenders and the developer was finalized with the signing of documents. Tyagi noted that the development of the group housing project might extend beyond 12 months but emphasized its significant addition to DLF’s portfolio.

The total consideration for the 29 acres of land is expected to surpass the Rs 825 crore associated with the bad loans. Tyagi disclosed that the outstanding loan was initially around Rs 1,200 crore, and the agreed settlement with the bankers involved a haircut, resulting in the acquisition at Rs 825 crore.

DLF Q3 ResultsOn Wednesday, DLF reported a 27 per cent increase in consolidated net profit to Rs 655.71 crore in the December quarter. This growth was attributed to higher income and reduced expenses. In the corresponding period of the previous year, the net profit stood at Rs 517.94 crore, and the total consolidated income rose to Rs 1,643.51 crore.

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