DLF and Everstone Group (Everstone), a Singapore-headquartered global investment manager, have entered into a binding and exclusive term sheet, to strategically collaborate and form a joint venture (JV) to invest in IREO and other group companies in India (IREO India Companies) held by the IREO group of FDI funds (IREO Funds), with investments from reputed global investors.
Through the proposed arrangement, the company intends to invest around Rs 3,750 crore for a majority stake, in the JV, which will hold economic interest in the IREO India Companies. Under a separate binding and exclusive term sheet executed on the same date by the parties with the IREO Funds, the proposed JV intends to invest these funds to acquire a stake of at least 20% in the IREO India Companies, together with certain governance-related rights. Through the proposed transaction, the JV’s aggregate economic interest (contractual and otherwise) in the IREO India Companies will be around 40%, with the IREO Funds holding the balance.
With its size, scale and strategic locations, the proposed transaction presents a compelling opportunity to deliver high-quality, valuable developments across Delhi, Gurugram and other regions. On completion, the IREO India Companies will be operated by a strong, independent management team executing an agreed business plan within a robust governance framework, under the guidance of the company and Everstone. The alliance combines the company’s proven development expertise with the strong capabilities of a global investment manager, with the aim of restoring momentum, unlocking embedded growth and building a stronger, more resilient business.
DLF is one of India's biggest property developers. The company’s primary business is development of residential, commercial and retail properties. The company has a unique business model with earnings arising from development and rentals.
