DLF Cyber City Developers Ltd (DCCL), the rental arm of DLF Ltd has entered into an agreement to acquire Hines stake in One Horizon Centre for Rs 780 crore.
DCCDL has entered into a Securities Purchase Agreement with Hines to acquire its 51.8 per cent stake in Fairleaf for a purchase consideration of approximately Rs 780 crores, subject to closing adjustment, DLF said in its statement to the Bombay Stock Exchange (BSE).
According to the company, the transaction is expected to be consummated in the next quarter subject to requisite closing actions, post which Fairleaf will become a wholly-owned subsidiary of DCCDL.
Hines has around nearly 52 per cent stake in the One Horizon Centre while the rest is with DCCDL. DCCDL has the first right of refusal with respect to acquiring Hines' stake.
The commercial tower One Horizon Center has leasable area of about 8,13,000 square feet offering high-end Grade A office spaces along with complementary retail space.
Sriram Khattar, MD-Rental Business, DLF, said the company has acquired complete ownership of this asset.
"This acquisition adds another trophy asset to our strong rental platform. We believe that this acquisition will be highly value accretive for us and will add approximately Rs 150-160 crore of rental revenues annually," Khattar adds.
Post-acquisition, the DCCDL platform will have about 34 million sq ft of operational rental portfolio.
In December 2017, DLF entered into this joint venture with GIC when DLF promoters sold their entire 40 per cent stake in DCCDL for nearly Rs 12,000 crore. This deal included sale of 33.34 per cent stake in the DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by DCCDL. DLF holds 66.66 per cent stake in DCCDL while GIC has the rest.
Shares of DLF on Thursday ended down by 1.14 per cent at 226.10 on the BSE.