DLF gains 3% as co enters into JV to invest Rs 1,900 cr in Gurugram projectshares gained more than 3 percent in the morning trade on March 20 after the company said it has entered into a Joint Venture (JV) with Hines that will invest Rs 1,900 crore to develop 2.9 million square feet of commercial space in Udyog Vihar, Gurugram.
The stock was quoting at Rs 199.40, up Rs 5.15, or 2.65 percent on the BSE, at 1000 hours IST.
DLF, on March 19, announced its second JV with Hines. “Subsidiary DLF Home Developers Limited and Green Horizon Trustee (an affiliate of Hines) have entered into a joint venture for developing a high-end commercial project in Gurugram,” the company said in its exchange filing.
DLF subsidiary holds 67 percent stake in the joint venture and 33 percent will be held by Hines, which has an option to increase its stake up to 49 percent.
“The total investment by the joint-venture partners in this project is about Rs 1,900 crore in accordance with the independent valuation undertaken by a category-1 merchant banker. Hines has invested approximately Rs 500 crore, on March 19, in the first tranche, DLF said.
The project will be developed on 11.76 acres of land owned by the joint venture company.
“We are excited about the JV with Hines, this is our second JV with them. With our joint experience, we shall work together to develop world-class buildings that will set new standards for commercial buildings in this part of the world”, says Sriram Khattar, Managing Director DLF Rental Business.
DLF and Hines had entered into their first joint venture in the year 2008 to develop One Horizon Center in DLF-5 Gurugram.