Listed real estate developer DLF has acquired 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.
The size of the agreement is Rs 825 crore, the company said.
“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. Out of the identified land, an area measuring 25 acres forms part of the mortgaged land.
"Accordingly, the company has entered into an agreement with the bondholder, wherein the company will purchase the said bonds at a negotiated consideration of Rs 825 crore and would assume the rights of the bondholder,” the realty major said in the filing.
It said that 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.
Later in an investor call, DLF Managing Director, Ashok Tyagi said that the land was acquired from a developer, who has a distressed loan from two lenders (Standard Chartered Bank, Singapore Branch, DB International (Asia) Limited, Singapore and Deutsche Investments India Private Limited).
He said that DLF had been working with the two lenders and the developer for the last 12 months trying to structure this transaction.
“Today, we have signed documents to acquire the debt from these two lenders and now hopefully in an amicable fashion, we will work with the developer to take control of this. This is 29 acres of group housing land which should translate into 7.5 million sqft of saleable area on Golf Course Extension Road near sector 61,” he said.
He added that with all the approvals and other formalities, it may take about 12 months to have it ready to come into the market.
According to a regulatory filing on January 24, DLF Limited has reported a consolidated net profit of Rs 649 crore in the third quarter of this fiscal, up by 26 percent YoY. DLF recorded the highest quarterly sales booking of Rs 9,047 crore backed by multiple launches during the quarter.
Also Read: DLF Q3 Results: Net profit up 26% YoY at Rs 649 crore
The company's consolidated revenue rose to Rs 1644 crore in October-December of 2023-24 from Rs 1559.66 crore in the year-ago period, according to a regulatory filing. DLF’s EBITDA stood at Rs 633 crore in Q3 while the surplus cash generation from operations touched Rs 1108 crore. The company’s EBITDA was at Rs 591 crore in Q2.
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