Saurabh Chawla, Senior ED Finance, DLF says that with a one-shot investment, GIC will invest Rs 1,990 crore in the two projects, adding that the projects are in early stages of planning and development.
DLF Home Developers (DHDL), a wholly-owned subsidiary of realty major DLF, has formed a joint venture (JV) with Singapore's sovereign wealth fund GIC.
With this JV, the subsidiary will launch two residential projects in Central Delhi by mid-next year, says Saurabh Chawla, Senior ED Finance, DLF.
Speaking to CNBC-TV18, Chawla says that with a one-time investment, GIC will invest Rs 1,990 crore in the two projects, adding that the projects are in early stages of planning and development.
Below is the transcript of Saurabh Chawla's interview with Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Sonia: Take us through the joint venture (JV) that you signed up with GIC and the details there?
A: It is quite clear in our press release. It is a JV to develop a residential project in Central Delhi. This is a same neighbourhood as our current project of Capital Greens and GIC is one of the largest sovereign funds in the world and they have aligned with us to develop this projects, which demonstrates our capability and progress in real estate development.
Latha: Does the money come in tranches as and when it is developed, what is the sequence of the money flowing in?
A: Money comes in one short. It is not in tranches. In foreign direction investment (FDI) money does not come in tranches.
Sonia: You were in talks with GIC for similar deals in other cities as well, in Chennai and Mohali if I am not wrong, is there anything that could work out in the near future with them?
A: We are in dialogue with many private equity players in many projects not only GIC but many others. At this stage, nothing has yet fructified. As and when something does fructify, we will inform the stock exchanges and the market about it. So nothing right now, which has reached conclusive stage but obviously a lot of the private equity players do discuss many such opportunities with us.
Latha: Can you revise for us what might be the level to which you may bring your debt down to this year?
A: We don’t give guidance to be very frank either on profitability or debt levels. But we had committed to the financial community that we would be doing at least two if not three transactions during the year which will raise almost about Rs 3,000 crore for us during this fiscal year.
If I were to add DT Cinema transaction along with this transaction plus few other smaller transactions which if we continue to do, we have already achieved our fiscal year target.
Sonia: When will these two projects be launched if you can give us a time line?
A: We will be applying for approvals over here. These projects will get launched sometime mid of next year. So these are very early stages of planning and development.