DLF Cyber City Developers Ltd (DCCL), the rental arm of DLF Ltd has entered into an agreement to obtain Hines stake in One Horizon Centre for Rs 780 crore.
DCCDL has entered into a Securities Purchase Agreement with Hines to obtain its 51.8 per cent stake in Fairleaf for a obtain consideration of about Rs 780 crores, topic to closing adjustment, DLF stated in its statement to the Bombay Stock Exchange (BSE).
According to the firm, the transaction is anticipated to be consummated in the subsequent quarter topic to requisite closing actions, post which Fairleaf will grow to be a wholly-owned subsidiary of DCCDL.
Hines has about almost 52 per cent stake in the One Horizon Centre though the rest is with DCCDL. DCCDL has the very first appropriate of refusal with respect to acquiring Hines’ stake.
The industrial tower One Horizon Center has leasable location of about 8,13,000 square feet supplying higher-finish Grade A workplace spaces along with complementary retail space.
Sriram Khattar, MD-Rental Business, DLF, stated the firm has acquired total ownership of this asset.
“This acquisition adds another trophy asset to our strong rental platform. We believe that this acquisition will be highly value accretive for us and will add approximately Rs 150-160 crore of rental revenues annually,” Khattar adds.
Post-acquisition, the DCCDL platform will have about 34 million sq ft of operational rental portfolio.
In December 2017, DLF entered into this joint venture with GIC when DLF promoters sold their complete 40 per cent stake in DCCDL for almost Rs 12,000 crore. This deal integrated sale of 33.34 per cent stake in the DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DCCDL. DLF holds 66.66 per cent stake in DCCDL though GIC has the rest.
Shares of DLF on Thursday ended down by 1.14 per cent at 226.10 on the BSE.