DLF to sell 40 pc stake in rental arm
DLF promoters KP Singh family will sell their 40 per cent stake in the company’s rental arm DLF Cyber City Developers for an estimated Rs14,000 crore to institutional investors. The promoters will re-invest a significant part of the amount realised from the sale in DLF Ltd. The decision was taken by the DLF’s board of directors in its meeting earlier this week based on the recommendation by the audit committee set up last year to suggest ways to drive the growth of rental business.
According to market sources, the valuation of promoters’ 40 per stake in DLF Cyber City Developers Ltd (DCCDL) could be around Rs12,000-14,000 crore.
“With this proposed transaction, DLF will be able to achieve three of its main objectives — removal of conflict of interest, creation of a rental platform with large financial investors and reducing substantial portion of debt. It’s killing three birds with one stone,” DLF Senior Executive Director Finance Saurav Chawla told PTI.
DLF would be able to create REITs in the capital market in partnership with the long term financial investors, he added. The promoters stake in DLF, which stands at 75 per cent, could increase post this investment, sources said.
Embassy, Warburg Pincus to develop industrial parks
Realty player Embassy Group has entered into an agreement with an affiliate of global private equity firm Warburg Pincus to form a joint venture Embassy Industrial Parks to develop industrial and warehousing spaces across the country.
The Embassy Industrial Parks will have an equity commitment of up to $250 million, from its joint venture partners, to fund land acquisition and development, he added. The company also appointed Anshul Singhal as Embassy Industrial Parks CEO. The joint venture entity marks the Embassy Group’s entry into a new business segment focusing on the development of industrial and warehousing spaces near key cities across India.
The business will primarily operate on the lease-rental model. These modern, well-planned, technology-enabled industrial and warehousing spaces are targeted at industry verticals such as 3PL, e-commerce, FMCG, automobile ancillaries and retail.
Embassy Industrial Parks is looking to build and lease 15-20 million sq ft over the next few years and the immediate focus will be to ensure that it takes up strategic land positions near Mumbai, Delhi, Bengaluru, Chennai, Pune and Ahmedabad.
Sobha’s Q2 sales bookings drop
Realty firm Sobha Ltd has reported over 11 per cent decline in sales bookings at Rs495 crore for the quarter ended September on lower realisation. Its sales bookings stood at Rs559 crore in the year-ago period. “The company during the quarter achieved new sales of 8,50,329 sq ft valued at Rs495 crore with an average realisation of Rs 5,822 per sq ft,” Bengaluru-based Sobha said in a statement.
Sales bookings in value terms declined because of fall in realisation price to Rs5,822 per sq ft from Rs6,703 per sq ft in the year-ago period. Sobha said demand for real estate, given the right stimulus, cannot remain subdued for long.
Infra summit
Naredco has sought government land parcels to give a boost to affordable housing. Affordable housing, regulatory authority and investments in the sector were among the key issues discussed at the two-day high level Real Estate and Infrastructure Investors’ Summit 2015 organised by NAREDCO in association with APREA-Asia Pacific Real Estate Association last week. — Agencies
