Blackstone, GIC, Canada Pension Plan and Qatar Investment Authority are among the 25 global investment firms that have shown interest in buying real estate giant DLF’s promoters’ stake in its rental arm. The deal is estimated to be around $2 billion, according to a report by Press Trust of India quoted in Livemint.
In October last year, DLF had announced that its promoters will sell their 40 per cent stake in the rental subsidiary DLF Cyber City Developers Ltd. DLF owns remaining 60 per cent stake in the arm, through which it holds a bulk of office and retail complexes.
The promoters will re-invest a significant part of the amount realised from the sale into DLF.
Singapore sovereign wealth fund GIC recently invested nearly Rs.2,000 crore in DLF’s two upcoming projects in the national capital. In 2011, DLF had sold its stake in IT SEZ at Pune to Blackstone.
“More than 25 global institutional investors have evinced interest in this proposed transaction. We expect to sign term sheet by end of March or mid-April,” DLF’s senior executive director finance Saurav Chawla had said last week.
DLF is aiming to complete the deal by July. Market sources had earlier said that the deal size could be about Rs.12,000-14,000 crore.
“With this proposed transaction, DLF will be able to achieve three of its main objectives — removal of conflict of interest, creation of a rental platform with large financial investors and reducing substantial portion of debt,” Chawla had said in October.