DLF pares GIC debt by Rs 3,100 crore; plans to clear all dues by 2nd quarter

Real estate giant DLF has repaid Rs 3100 crore of debt to its venture partner GIC by transferring Noida shopping mall and some land parcels. DLF owed about Rs 8,700 crore to DLF Cyber City Developers LTD (DCCDL), which is a joint venture between DLF and Singapore sovereign wealth fund GIC. With the latest transaction, DLF's debt has come down to about Rs 5600 crore as of July 2019.

In an investor presentation, DLF clarified that it has transferred the Mall of India project in Noida, worth Rs 2950 crore, to DCCDL. The Economic Times also reported that the company also added that it has transferred 3.05 acres of land parcel in Gurugram to the Singapore-based firm.

The joint venture between GIC and DLF was signed in December 2017 when DLF promoters sold 40 percent of their stake in DCCDL to GIC for about Rs 1,200 crore. The deal included the sale of DCCDL's 33.34 percent stake to GIC for about Rs 9,000 crore and the remaining Rs 3m000 crore was acquired by DCCDL through buyback.

DLF holds about 66.66 percent in the joint venture firm and the remaining 33.34 percent is with GIC. The Gurgaon-based real estate giant has plans to sell prime commercial project Horizon Central in Gurugram for about Rs 850 crore, to settle the remaining debt of Rs 5,600 crore. The company also plans to transfer its mall in Saket for a valuation of Rs 1,050 crore, reported ET.

The report also stated that DLF will transfer its commercial land in Chennai for about Rs 1,000 crore. Some parts of the monetary settlement to GIC will be done by transferring SEZs at Hyderabad and Chennai as per the contract with group firm DLF Assets Ltd. The leftover debt of about Rs 7,00 will be paid in cash.

DLF has reported a two-fold growth in its profit at Rs 414.72 crore for the June quarter against Rs 172.77 crore last year. 

DCCDL holds about 30 million sqft of commercial real estate in Gurugram that yields an annual revenue of about Rs 3,000 crore.