DLF Acquires 29 Acres of Land in Gurugram for Housing Project

Real estate giant DLF Ltd. has announced its plans to acquire approximately 29 acres of land in Gurugram from IREO, a leading real estate developer. This acquisition is part of DLF's strategy to expand its residential portfolio and cater to the growing demand for housing in the region.

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Acquisition Details

DLF will acquire the land through a unique transaction involving the takeover of bad loans worth Rs 825 crore related to the property. The land, currently mortgaged by IREO with several financial institutions, will be utilized by DLF to develop a prestigious group housing project in the Golf Course Extension area of Gurugram, Haryana.

Strategic Investment

DLF's acquisition of the land is considered a strategic investment that aligns with the company's long-term growth plans. The company intends to acquire the overall rights and interest in the 29-acre land parcel, which boasts an estimated development potential of up to 7.5 million square feet.

Negotiated Consideration

The total consideration for the acquisition is expected to exceed Rs 825 crore, slightly higher than the outstanding loan amount owed by IREO to the banks. DLF has entered into agreements with Standard Chartered Bank, Singapore Branch, DB International Asia, Singapore, and Deutsche Investments India, the lenders holding the non-convertible, redeemable bonds issued by IREO.

Acquisition Process

DLF is currently finalizing an agreement with IREO for the acquisition of the 29 acres of land, including the requisite Floor Area Ratio (FAR). The company intends to purchase the bonds at a negotiated consideration of Rs 825 crore and assume the rights of the bond holder, thereby becoming the new lender.

Additional Land Acquisition

In addition to the 29-acre land parcel, DLF plans to acquire rights and interest in the remaining 4 acres of land through separate binding agreements with IREO and its land-owning companies.

Secured Bonds

The bonds acquired by DLF are secured against 72.36 acres of land owned by IREO in Gurugram. Due to the default committed by IREO, the bond trustee initiated proceedings for recovery of dues under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, leading to auctions of the mortgaged land.

DLF's acquisition of 29 acres of land in Gurugram marks a significant milestone in the company's expansion strategy. The development of a group housing project on this prime land parcel will further strengthen DLF's position in the real estate market and cater to the growing demand for quality residential spaces in the region.