Indian developer DLF Ltd has formed a joint venture with US-based property investment firm Hines for constructing a high-end commercial real estate project in Gurugram.
The Indian company, through wholly owned unit DLF Home Developers Ltd, will hold a 67% stake in the joint venture while Hines will own the remaining. Hines will have an option to increase its stake to up to 49%, according to a joint press statement.
DLF and Hines will together invest Rs 1,900 crore ($275 million) in the project. Hines has invested about Rs 500 crore as the first tranche of the amount.
The commercial project will be developed on 11.76 acres of land located across the highway to the existing business district of DLF CyberCity in Gurugram.
“This is our second JV with them. With our joint experience, we shall work together to develop world-class buildings which will set new standards for commercial buildings in this part of the world,” said Sriram Khattar, managing director, DLF Rental Business.
Surojit Basak, executive director at DLF, said the JV will commence construction in the next financial year.
DLF and Hines entered into their first joint venture in 2008 to develop One Horizon Center in Gurugram. The new project will be nearly three times the size of One Horizon.
“Over the past 10 years, Hines and DLF have established a successful partnership, which has laid the foundation for us to come together again and expand the relationship to build world-class developments in Delhi NCR,” said Lee Timmins, CEO, Hines Eurasia.
Amit Diwan, managing director and country head of Hines India, said the project will be developed near the Cyber Hub office area as well as the Oberoi and Trident hotels.
DLF Group has 227 million square feet of development potential across residential and commercial segment. The group has an annuity portfolio of over 32 million square feet. It struck a mega deal with GIC when the promoter group sold a 33% stake in its rental arm to the Singapore sovereign wealth fund.
Hines has about $120.6 billion of assets under management. The firm has 128 projects under development around the world. It has developed, redeveloped or acquired 1,348 properties, totalling 444 million square feet. The firm’s current property and asset management portfolio includes 512 properties, spread across 223 million square feet.