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Blackstone, GIC circling stake in India’s largest developer

The pair are reportedly among the shortlisted bidders for a 40% stake in DLF’s commercial property arm, DLF Cyber City Developers.

Blackstone and Singaporean sovereign wealth fund GIC are reportedly on a shortlist of bidders for the sale of a stake in India’s largest real estate developer DLF’s commercial property arm.

The developer aims to raise $1.79 billion by selling a 40 percent stake in its commercial property arm, DLF Cyber City Developers.

DLF announced on an analyst call on Tuesday that it had shortlisted bidders and given them access to the virtual data room and vendor diligence reports.

Blackstone and GIC were unable to respond to request for comment by press time. 

“Within a month, [the bidders] will submit the shareholder agreement after the first stage of due diligence, after which we will be negotiating with them. By mid-October, we should be able to announce (a buyer/buyers),” said Saurabh Chawla, senior executive director of finance at DLF, on the analyst call.

Once the transaction is concluded, it will create two business lines for DLF: A residential development company wholly owned by DLF, and an independent leasing business comprising its office and retail projects, in which DLF will maintain a 60 percent stake.

“All bidders (are) aligned to create a platform partnership on a long-term basis to own and develop commercial assets, and acquire assets inorganically in the marketplace,” DLF is reported to have said in an analyst presentation late on Monday.