Emphatic Realty Giant DLF Puchases 29-acre land for Rs. 825 crore in Gurugram

Prominent Real estate developer DLF purchases 29-acre land on prime Golf Course Extension Road in Gurugram having a potential of 7.5 million square feet of development, the company said in a regulatory filing. According to the statement of company, the size of the agreement is Rs. 825 crore.

The spokesperson of the company also added, 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. It is with certainty that I can confirm that 25 acres of the identified land are indeed part of the mortgaged land. 

The company has entered into an agreement with the bondholder, and the company will purchase the said bonds at a negotiated consideration of Rs.825 crore and would assume the rights of the bondholder.   

The firm is purchasing the bonds as a strategic investment and would be looking at rights under the bonds documentation including enforcement and settlement with the bond issuer including its affiliate(s), after following due process of law and approvals and sanctions as may be required.  

Managing Director of DLF, Ashok Tyagi said that, the plot of land in question was procured from a real estate developer who was facing financial difficulties and had to secure a distressed loan from three lending institutions. These institutions are Standard Chartered Bank - Singapore Branch, DB International (Asia) Limited - Singapore, and Deutsche Investments India Private Limited. DLF had been working with the two lenders and the developer for the last 12 months to structure this transaction, according to him.

He further added that, they are pleased to inform that they have recently signed documents to acquire the debt from two lenders and sincerely hope to work with the developer in a cooperative and positive manner to take control of the 29 acres of group housing land situated near Sector 61 on Golf Course Extension Road. This should result in a saleable area of 7.5 million sqft and they are confident that their collaboration with the developer will be mutually beneficial.

Therafter he mentioned that, it might take around 12 months to complete all formalities, including approvals, before it can be launched in the market. The speaker articulated that the forthcoming product will require a period of approximately twelve months to undergo the necessary regulatory assessments and obtain requisite endorsements prior to its market debut.

DLF Limited reported a consolidated net profit of Rs 649 crore in Q3 FY21, up 26% YoY. The company achieved the highest quarterly sales booking of Rs 9,047 crore, supported by multiple launches during the quarter.