DLF transfers Noida’s Mall of India to its subsidiary for Rs 2,950 crore

Realty main DLF Thursday mentioned it has transferred shopping center in Noida, Uttar Pradesh, to its subsidiary agency for Rs 2,950 crore, as a part of efforts to settle dues of its three way partnership agency with GIC. DLF has to pay Rs 8,700 crore to the DLF Cyber Metropolis Builders Ltd (DCCDL), which is a three way partnership agency of DLF and Singapores’ sovereign wealth fund GIC. It needs to settle this dues by September this 12 months by switch of rental property and land parcels.

In a regulatory submitting, DLF knowledgeable that the corporate has transferred its property, Mall of India, Noida to one among its subsidiaries Paliwal Actual Property Ltd, within the bizarre course of enterprise at an arm’s size consideration of Rs 2,950 crore, arrived on the premise of the valuation report of an impartial valuer. 

“That is consistent with the corporate’s said goal of streamlining and consolidating the operations and holding construction of its rental property,” DLF added.

Mall of India is positioned in Sector 18, Noida, with a leasable space of two million sq ft. It was developed at a price of round Rs 2,000 crore.

In response to sources, the switch of Mall of India to a subsidiary agency has paved the way in which for promoting this retail asset to DCCDL to clear the dues. DLF has 66.66 per cent stake within the three way partnership agency, whereas GIC has 33.34 per cent shareholding. 

DCCDL at the moment holds round 30 million sq ft of rent-yielding business property, largely in Gurugram (Haryana) with annual rental revenue of over Rs 2,500 crore.

The JV was shaped in December 2017 when DLF promoters bought complete 40 per cent stake in DCCDL for practically Rs 12,000 crore.

This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares price about Rs 3,000 crore by DCCDL.

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