Mumbai, Nov 19,(UNI) DLF has announced that the Company has attracted participation of private equity real estate funds in its township projects by diluting 49 per cent equity stake at a premium, in seven residential projects to a Merrill Lynch&Co entity for a consideration of Rs 1481 crore.
The mid-income housing projects, located in Chennai, Bangalore, Kochi and Indore would get fully developed in about 7-8 years time frame.
In a related but separate transaction, the Company has also diluted 49 per cent of its equity stake at a premium, in another middle-income housing project in Panchkula, Haryana to Brahma Investments, for a consideration of Rs 194 crore.
In a statement here today, Mr T C Goyal, Managing Director, of the Company said, ''as a part of its strategic objective, DLF continues to remain focused on keeping its net economic interest in housing business to a ten-year development horizon.'' Accordingly, 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 DLF shareholders. Besides resulting in positive NAV accretion for DLF, the transactions would provide good returns for the PE investor.