DHDL Home Developers (DHDL), a wholly-owned subsidiary of realty major DLF Ltd, has received Competition Commission of India’s approval to form joint venture with Singapore’s sovereign wealth fund GIC to invest in two upcoming projects in Central Delhi.
The two firms expressed their interest to form a joint venture in an earlier statement dated September 02, 2015.
“In continuation of the above, …the Hon’ble Competition Commission of India vide its letter dated November 12, 2015 has communicated that the Commission in its meeting held in November 10, 2015 considered and approved the proposed combination in terms of sub-section (1) of the Section 31 of the Competition Act, 2002,” the BSE filing said.
The detailed Order of the commission in this regard is awaited. Pursuant to receipt of this approval, both parties are initiating the necessary steps to successful closing of this transaction, the statement added.
While the stake of each company in the JV is still unknown, the proposed projects in Central Delhi will be developed under DHDL.
GIC will invest a sum of approximately Rs.1990 crore in the said projects, subject to meeting all statutory requirements and conditions precedents which are customary, prior to the closing, DLF disclosed in a BSE filing.
GIC, which manages assets worth $100 billion globally, has been actively scouting for investment opportunities in the Indian real estate sector. It announced a joint venture with Bengaluru-based Brigade group to invest Rs 1,500 crore in September last year in acquiring land for residential and mixed-use developments. In December, the firm signed a joint venture deal with Vatika group to develop two residential projects in Gurgaon.