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DLF sells 17.5 acre plot in Mumbai to Lodha Developers for Rs 2750 crore

13 Aug 2012 Evaluate

In a move to pare debts, real estate developer, DLF has parted ways with its 17.5 acre plot at Lower Parel in Mumbai to Lodha Developers for a luring amount of Rs 2,750 crore. The deal includes the land cost of Rs 1,200 crore and liabilities worth Rs 1,500 crore incurred by the real estate giant since it purchased the plot in 2005. This decision of both the firms was finalized after the plans to jointly develop the plot went kaput over revenue sharing agreement issue. Further, as per the deal, the payment towards first installment of Rs 500 crore will be made on August 13, while the remaining would be paid in October. 

In June 2005, the company purchased the land in Mumbai in an auction from National Textile Corporation (NTC) for an amount aggregating to the worth of Rs 702.2 crore. However, the company which is burdened with a debt of about Rs 23,000 crore, decided to exit non -core business in 2011. The company before finally taking the decision of sale had changed its developmental plans for the plot twice-firstly from building a retail mall and then from building a commercial office buildings. Meanwhile, Lodha group, which is already building the world’s tallest residential tower, will rework DLF's plans to construct three 90-floor luxury towers and a 17-storey public parking building on the plot, as the former considers the plot to be apt for mixed use development of commercial, retail and residences for high-end and middle income category.

Lodha Group piping Runwal group in the race to acquire the DLF’s land, emerged as the winner of the bid. However, even Oberoi Realty along with Morgan Stanley private equity had envisaged their interest over the deal. The land enticed investor’s attention only after new development control rules in Mumbai were notified in January, which clarified about how much space, could be built on the land parcel and the amount of extra FSI that could be bought.

DLF Share Price

613.20 5.50 (0.91%)
22-Apr-2026 14:53 View Price Chart
Peers
Company Name CMP
Lodha Developers 885.80
Dilip Buildcon 457.70
DLF 613.20
Oberoi Realty 1738.40
Ahluwalia Contract(I 890.50
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