DLF sets up JV for two central Delhi projects, GIC to invest Rs 1,990 crore

India’s largest real estate firm DLF today said that its subsidiary DLF Home Developers has entered into a joint venture with Singapore’s sovereign wealth fund GIC to invest in two upcoming projects of the company in central Delhi.

GIC will invest a sum of around Rs 1,990 crore in the JV, which is expected to benefit from GIC’s experience of investing in integrated developments across the globe.

“We hope that this investment is a beginning of a new relationship with GIC at the project level. We look forward to working together with GIC in many projects, both residential and commercial,” said Saurabh Chawla, senior executive director – finance at DLF. “Going forward, such project level investments shall lead to unlocking of embedded value in many of DLF’s development projects,” he added.

ET had reported on August 27 that DLF is close to signing a deal with GIC to sell majority stake in the next phase of its residential project DLF Capital Greens in New Delhi.

Mohit Gujral, chief executive officer of DLF said the inflow of patient, long-term capital is vindication and validation of DLF’s leadership in the real estate development space.

“We are excited with the synergy of such capital with DLF’s experience in township and integrated development to potentially unleash many more signature developments and herald a new era of smart cities,” he said.

Loh Wai Keong, managing director and co-head Asia at GIC Real Estate said, “GIC is confident in India’s long-term growth potential and we look forward to partnering DLF, a leading real estate developer in India, to tap into the attractive opportunities of India’s real estate sector. We hope to leverage our mutual strengths to grow this partnership with DLF and to collaborate on more projects in the future. Globally, we have successfully nurtured long-term partnerships with strong and well-established developers across our key markets, and we hope to do the same with DLF in India.”

DLF said the investment is subject to meeting all statutory requirements and conditions precedents which are customary, prior to the closing.

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