DLF, India's largest real estate developer by market cap, on Monday said it has sold 49 per cent stake in some of its residential projects to private equity investors for a total consideration of Rs 1,675 crore.
Merrill Lynch & Co has bought 49 per cent equity in seven residential projects in Chennai, Bangalore, Kochi and Indore for Rs 1,481 crore, DLF said in a communique to the Bombay Stock Exchange.
The mid-income housing projects would get fully developed in about 7-8 years, it added.
In a separate transaction, the company has diluted 49 per cent equity in another middle-income housing project at Panchkula in Haryana to Brahma Investments for Rs 194 crore, the company said.
“…these two transactions shall help DLF unlock its investments in land resource for the eight projects and also help in increasing rate of return to shareholders,” DLF Managing Director T C Goyal said.
Besides resulting in positive net asset value accretion for DLF, the transactions would provide good returns for the private equity investors, the realty major said.
Source: The Hindu