DLF, Blackstone restructure seven residential projects' JV shareholding

MUMBAI: Realty developer DLF has restructured its joint venture with Blackstone Group-managed entity that held 49% stake in seven housing projects through an agreement entered into in 2007.

Blackstone had inherited BofA Merrill Lynch's India portfolio including its investment in DLF's seven housing projects through four subsidiaries. DLF's subsidiary DLF Home Developers Ltd (DHDL) had diluted 49% stake in these seven residential projects in Chennai, Bengaluru, Kochi and Indore to a Merrill Lynch & Co entity, now managed by Blackstone.

In July 2016, DLF had announced the restructuring of its joint venture looking at the market scenario and to concentrate on select projects in certain micro markets.

The developer and the investor had jointly decided to realign the current shareholding arrangement in these joint venture companies in order to maintain continued focus on future development of various projects, DLF said in a regulatory notice.

"Consequently, with the realignment of the current shareholding in the JV companies, DHDL ceases to hold any stake in DLF Southern Homes Pvt Ltd and DLF Homes Rajapura Pvt Ltd; while DLF Southern Towns Pvt Ltd and DLF Garden City Indore Pvt Ltd have become wholly owned subsidiaries of DHDL," DLF said in a filing to the BSE.

However, DLF said the completion and handing over of all the launched projects in the cities of Bengaluru, Chennai, Kochi and Indore will be its responsibility as per contractual arrangements.