New Delhi: Real estate developer DLF Group said it signed a $20 billion (Rs86,885 crore) deal Monday with Al Nakheel of the United Arab Emirates to build two townships in India.
The companies will initially invest $5 billion each in the next three years to build complete townships at unspecified locations in India, according to a company executive with DLF who declined to be named pending a formal announcement later in the day.
“We have signed a 50:50 joint venture with Al Nakheel to develop integrated townships with an investment of $20 billion,” the executive said.
He said the townships would cover 40,000 acres (16,200 hectares) of land, of which 70% has aleady been bought.
In January, DLF said it had filed a new and downsized initial share sale offer with the market regulator almost six months after investors balked at its plan to raise $3 billion.
DLF said in a statement it now planned to raise Rs100 billion via an initial public offer sometime in 2007, down from the Rs130 billion of shares it proposed to sell in August 2006.
The August share sale plan was withdrawn after major investment banks said the company’s plans were unrealistic. New Delhi-based DLF now plans to sell 10.1% of the firm, or 175 million shares, to fund the construction of hotels and free-trade zones.