DLF Cyber City Developers (DCCDL), the rental arm of DLF, late on Friday announced that it has entered into a securities purchase agreement with funds managed by Hines to acquire their stake in Fairleaf Real Estate, which owns and operates the One Horizon Center. DCCDL holds 48.2% stake in Fairleaf Real Estate.
“DCCDL has entered into a securities purchase agreement with Hines to acquire its 51.8% stake in Fairleaf for a purchase consideration of approximately Rs 780 crore, subject to closing adjustments. The transaction is expected to be consummated in the next quarter subject to requisite closing actions, post which Fairleaf will become a wholly-owned subsidiary of DCCDL,” DLF said in a regulatory filing.
Commenting on the transaction, DLF’s managing director (rental business), Sriram Khattar said, “We are delighted to acquire complete ownership of this marquee asset. This acquisition adds another trophy asset to our strong rental platform. We believe that this acquisition will be a highly value accretive for us and will add approximately `150-160 crore of rental revenues annually.”
Post completion, the DCCDL platform will have around 34 million sqft (msf) of operational rental portfolio, he added. (DCCDL) is the joint venture firm of DLF and Singapore’s sovereign wealth fund GIC.
One Horizon is part of a larger mixed-use development located in DLF 5, Gurgaon. The leasable area of the property is around 8.13 lakh sqft, offering Grade-A office spaces along with complementary retail space.
DLF and Hines had entered into their first joint venture in 2008 to develop One Horizon Center in DLF-5, Gurgaon.
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