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India’s largest real estate developer DLF announced that the company will settle Rs. 8500 crores payable with its Joint Venture partner GIC, which is a Singapore based sovereign wealth fund by the year 2020. DLF holds 66.64% stake in the Joint Venture firm DLF Cyber City Developers (DCCDL) whereas the remaining (33.34%) is held by GIC.
DCCDL at present holds 27 million square-feet of rent-yielding commercial assets, with an annual income of about Rs. 2400 crores. The Joint Venture was established in December 2017 when the DLF promoters sold entire 40% of stake in DCCDL for approximately Rs.12,000 crores. DLF reported the financial report for the JV firm DCCDL with a net profit of Rs. 363 crores through the total income of Rs. 1227 crores during the first quarter of the current fiscal period.
DLF also posted their quarterly financial report for the June-end quarter of the current fiscal year with a net profit of Rs. 172.7 crores, resulting in a 56% increase in profit levels as compared to Rs. 110 crores profit during the same quarter of the previous fiscal year.
However, the company’s total income declined more than 25% to Rs. 1657.6 crores as compared to Rs. 2211.2 crores earned during the corresponding quarter of the previous year. The company also added in a statement, “It is anticipated that intercompany payables shall be settled by 2020, largely by transfer of certain identified assets of DLF.”
