DLF buys DCM Shriram mill land for Rs 1,675 cr

New Delhi, Aug 16 (UNI) Construction major DLF Ltd today said it has entered into an agreement with integrated business group DCM Shriram Consolidated Ltd (DSCL) and Lohias Group to acquire a project consisting of 38 acres of land for Rs 1,675 crore.

The project, likely to be the largest private sector land deal in the country, will give DLF access to about 38 acres of prime land at just about 10 km from Connaught Place, the capital's central business unit.

The property was a landmark known as Swatantra Bharat Mills (SBM) and DCM Silk Mills and is located at the intersection between Shivaji Marg and Zakhira Bridge in north Delhi.

This acquisition coupled with the previous acquisition of contiguous plots, will add Rs 4,000 crore to its net asset value (NAV), DLF said in a statement.

It will also increase the NAV of the existing IT SEZ projects by Rs 1,000 crore, thereby the total cumulative NAV increasing by Rs 5,000 crore.

Another DLF group company already owns 25 acres in an adjoining piece of land. Recently, the company had also contracted to purchase another adjoining parcel of land measuring two acres from Pure Drinks Ltd.

''It has been on our mind for sometime to monetise this asset to support our growth plans. The sale of this project represents a well considered exit option,'' Ajay and Vikram Shriram, the chairman and vice chairman, respectively, earlier said in a joint statement.

With the current acquisition, DLF will have the potential to build three msf of IT SEZ offices, two msf of Shopping mall and five msf of residential units, totaling around 10 msf of saleable/ leasable area.

''The project will be built around a 121-acre green belt belonging to DDA. The development will offer modem workspace to IT/ITeS companies, clubbed with residential, retail and recreational developments,'' DLF said.

It is learnt that DLF is mulling an investment of Rs 11,000-12,000 crore towards development of this land into an integrated township, comprising office space, houses, commercial units and hospitality.

By far, such integrated developments have only been taking place outside the metros, in satellite cities.

UNI