Real estate major DLF Group has settled the entire amount of Rs 8,700 crore payable to DLF Cyber City Developers Ltd (DCCDL) — its joint venture with Singapore’s sovereign wealth fund GIC — by transferring several completed commercial properties, land parcels and cash payment.
“This has been a major restructuring exercise and has now resulted in a larger alignment of the group’s rental assets under the DCCDL platform,” it said in a statement. “With the conclusion of the above, DLF has completed the final chapter of its balance sheet transformation.”
DCCDL continues to be 67:33 joint venture between DCCDL and Reco Diamond Pvt Ltd of GIC. The inter-company payables (net of capital advances) to DCCDL at the beginning of 2019 were more than Rs 8,700 crore, which were reduced to Rs 5,541 crore by June 30.
“The inter-company payables have now been fully settled,” said DLF. “We expect that pursuant to these transfers and consolidation of commercial assets, the DCCDL platform is positioned even more strongly to continue its growth journey.”
As part of the settlement, DLF has transferred its shareholding in its arm DLF Info Park Developers in Chennai at an enterprise value of Rs 1,000 crore. This subsidiary holds 26.64 acres of land.
That apart, it has transferred its shopping mall DLF Saket in the national capital for an enterprise value of Rs 1,012 crore.
DLF also transferred its shareholding and compulsorily convertible debentures (48.2 per cent of the fully diluted capital) in Fairleaf Real Estate Pvt Ltd, a joint venture company that owns One Horizon Centre commercial project in Gurugram, for an enterprise value of Rs 1,700 crore.
“The total settlement of receivables (net of values received for transfer of shareholding, dividend received from DCCDL and other inter-company adjustments) will result in an increase in the company’s net debt by only Rs 475 crore,” said DLF.