DLF subsidiary to buy Delhi land for $390m

The Indian real estate firm is buying 38 acres of land in New Delhi from DCM Shiriram.

DLF Group, the Mumbai-based real estate company that became public in India in June, has bought 38 acres of land in New Delhi from DCM Shiram Consolidated for $390 million (€152 million).

Following news reports, DCM confirmed on Thursday it has sold 50 percent of its Delhi land redevelopment project to BES Buildcon, a subsidiary of DLF Group.
The land is located in West Delhi, about ten kilometres from Delhi’s central business district, Connaught Place. The total project has been valued at Rs 1,675 crore ($390 million), and DCM has received Rs 837.50 crore ($204 million) immediately from the sale.

DLF already owns 25 acres of land adjacent to the site, and reports have speculated the firm may be planning to develop an integrated township on the combined area.

DLF has 220 million square feet of existing properties and has more than 574 million square feet worth of projects on the drawing board. In June, the firm announced plans to team up with Fortis Healthcare to develop hospitals in 31 Indian cities in the next 3 to 5 years. There have also been reports that the firm is launching three new private equity vehicles to invest in real estate and infrastructure in India, tapping foreign investors for capital.