DLF takes 51% stake in Mumbai project for Rs 400 crore

economictimes.indiatimes.com:

DLF has acquired a controlling 51% stake in a special purpose vehicle (SPV) responsible for a development project spanning around 3.5 million square feet in Mumbai’s Andheri area for approximately Rs 400 crore. “This is part of a bigger slum rehab scheme, where we anticipate that once the entire process is complete, the total saleable area should be in the range of 3 to 3.5 million square feet,” DLF chief executive Ashok Kumar Tyagi said during the real estate developer first quarter earnings call on Monday.

In the initial phase of the project, DLF will develop approximately 900,000 sq ft jointly with Trident. Additional land will be made available gradually for further stages of development.

“In line with our stated strategy of entering new markets, we have announced our arrangement with Trident to jointly develop our residential project in Mumbai,” Vivek Anand, group chief financial officer of DLF Ltd, said. “A Trident subsidiary is currently developing this SRA (Slum Rehabilitation Authority) project,” he said.

“This will be a pilot project to understand the market dynamics and apply these learnings to see how best we can plan our expansion strategy in this market.” DLF had on Friday said its subsidiary DHDL has successfully concluded a securities subscription and shareholders’ agreement to allot 9,800 equity shares valued at Rs 10 each in the SPV to Trident Buildtech Pvt Ltd, a company actively engaged in projects within Delhi-NCR and Panchkula. DLF said that at some point it will take equity in the parent company.