DLF transfers Noida mall to its subsidiary for 2,950 crore
1 min read 03 May 2019, 11:10 AM ISTDLF has transferred its property, Mall of India, Noida, to one of its subsidiaries Paliwal Real Estate LtdMall of India is located in Sector 18, Noida, with a leasable area of 2 million sq ft. It was developed at a cost of around ₹2,000 crore
PremiumRealty major DLF said it has transferred shopping mall in Noida, Uttar Pradesh, to its subsidiary firm for ₹2,950 crore, as part of efforts to settle dues of its joint venture firm with GIC.
DLF has to pay ₹8,700 crore to the DLF Cyber City Developers Ltd (DCCDL), which is a joint venture firm of DLF and Singapore's sovereign wealth fund GIC. It wants to settle these dues by September this year through transfer of rental assets and land parcels.
In a regulatory filing on Thursday, DLF informed that the company has transferred its property, Mall of India, Noida, to one of its subsidiaries Paliwal Real Estate Ltd, in the ordinary course of business at an arm's length consideration of ₹2,950 crore, arrived on the basis of the valuation report of an independent valuer.
"This is in line with the company's stated objective of streamlining and consolidating the operations and holding structure of its rental assets," DLF added.
Mall of India is located in Sector 18, Noida, with a leasable area of 2 million sq ft. It was developed at a cost of around ₹2,000 crore.
According to sources, the transfer of Mall of India to a subsidiary firm has paved the way for selling this retail asset to DCCDL to clear the dues.
DLF has 66.66% stake in the joint venture firm, while GIC has 33.34% shareholding.
DCCDL currently holds around 30 million sq ft of rent-yielding commercial assets, largely in Gurugram (Haryana) with annual rental income of over ₹2,500 crore.
The JV was formed in December 2017 when DLF promoters sold entire 40 per cent stake in DCCDL for nearly ₹12,000 crore.
This deal included sale of 33.34 per cent stake in DCCDL to GIC for about ₹9,000 crore and buyback of remaining shares worth about ₹3,000 crore by DCCDL.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
