DLF's rental arm acquires Hines' 51.8% stake in Fairleaf

Real estate developer DLF on Thursday said its rental arm DLF Cyber City Developers Limited (DCCDL) has acquired 51.8 per cent stake from Hines in Fairleaf Real Estate Private Limited.

Fairleaf was a joint venture company between DLF and funds managed by Hines, a global real estate investment, development and management firm, which owned and operated One Horizon Centre in Gurugram.

In December, DLF had said that DCCDL had entered into a securities purchase agreement with funds managed by Hines to acquire their 51.8 per cent stake in Fairleaf for a purchase consideration of approximately Rs 780 crore.

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"We would now like to inform that DCCDL has completed the acquisition of this 51.8 per cent stake at a consideration of Rs 779.40 crore and consequently Fairleaf has become a wholly owned subsidiary of DCCDL with effect from today i.e. 18th February 2021," DLF said in a stock filing on Thursday.

One Horizon Centre is an iconic asset forming part of the larger mixed use development located in one of the most sought-after location-DLF 5, Gurugram with a leasable area of 8,13,000 square feet, offering high end Grade A office spaces along with complimentary retail space, DLF said.

The acquisition of Fairleaf will be highly value accretive for the company and will add approximately Rs 150-160 crore of rental revenues annually. Post completion of this acquisition, the DCCDL platform will have approximately 34 million square feet of operational rental portfolio, DLF's rental business MD Sriram Khattar had said earlier.  

On Thursday, shares of DLF closed 2.69 per cent lower at Rs 306.25 on the BSE.

Also read: DLF's rental arm to acquire Hines stake in Gurugram project for Rs 780 crore