Singapore sovereign wealth fund GIC has sold its entire stake in a joint venture with Indian real estate company DLF Ltd that it formed nearly a decade ago to develop a housing project in central Delhi.
The wealth fund has sold its 49.99% stake in DLF Urban Pvt Ltd to DLF Home Developers Ltd, a wholly owned DLF arm, for Rs 496.73 crore ($57.9 million), according to a stock-exchange filing.
GIC held the stake via equity shares and compulsorily convertible debentures. The transaction will make DLF Urban a fully owned subsidiary of DLF Home Developers.
GIC and DLF had formed the joint venture in 2015 to develop two residential projects, together called ‘One Midtown’, in Central Delhi. The wealth fund committed a total investment of Rs 1,990 crore in the joint venture at the time.
VCCircle couldn’t immediately ascertain the amount GIC might have separately received as coupon payments on the debentures.
It was reported in 2018 that DLF Home Developers and GIC might infuse an additional Rs 1,250 crore to fund the development of the first phase of the project. As of June 2023, the project had sold 74% of its area with committed receivables of Rs 1,949 crore, while its total saleable area is about 2 million square feet. DLF Urban posted revenue of Rs 4.07 crore for the fiscal year ended March 2024 and Rs 0.42 crore in the preceding year.
GIC is also an investor in DLF’s rental arm DLF Cyber City Developers Ltd with a 33% shareholding. It acquired the stake in 2017 for about Rs 9,000 crore and is said to be looking to exit its investment. Media reports previously said that GIC and DLF were considering plans to monetise the business an initial public offering or a real estate investment trust (REIT).
The sovereign wealth fund is one of the biggest investors in India’s real estate sector. It controls office parks developer Nirlon Ltd with a 63.9% stake. It invested in the Mumbai-based company in 2015. The wealth fund was joined by Canada’s Brookfield Asset Management, which picked up a 7.7% stake in the company last September. GIC also formed an investment platform with Phoenix Mills Ltd in 2021 to develop mixed-use projects in Mumbai and Pune.
