DLF Provides Update on Land Acquisition Agreement

DLF Ltd has recently entered into a significant agreement with Standard Chartered Bank, Singapore Branch, DB International (Asia) Limited, Singapore, and Deutsche Investments India Private Limited (referred to as 'Lender/ Bond Holder'). The agreement pertains to the purchase of privately placed, listed, secured, non-convertible, redeemable bonds with a face value of ₹600 crore, on which the bond issuer has defaulted in repayment, including accrued interest.

The bonds are secured against approximately 72.36 acres of land parcel(s) located in Gurugram, Haryana, known as the 'Mortgaged Land.' Axis Trustee Services Limited, acting as the 'Bond Trustee' for and on behalf of the Bond Holder, holds security over the Mortgaged Land.

Due to the default by the bond issuer, the Bond Trustee initiated recovery proceedings under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act and conducted auctions of the Mortgaged Land. In light of the development potential of a part of the Mortgaged Land, DLF Home Developers Limited (DHDL), a wholly-owned subsidiary of DLF Ltd, participated in the acquisition process. However, DHDL's bid was not accepted by the Bond Trustee on certain technical grounds, leading to ongoing litigation before the Debt Recovery Appellate Tribunal, Delhi.

DLF, either directly or through its affiliates, plans to acquire overall rights and interests in a land parcel measuring approximately 29 acres (referred to as the 'Identified Land') with an estimated development potential of up to 7.5 million square feet. Out of this Identified Land, around 25 acres form part of the Mortgaged Land.

As part of the agreement with the Bond Holder, DLF will purchase the defaulted Bonds at a negotiated consideration of ₹825 crore, assuming the rights of the Bond Holder. This acquisition is positioned as a strategic investment, and DLF intends to explore its rights under the bonds documentation, including enforcement and settlement with the bond issuer and its affiliates, following due legal processes and required approvals.

Furthermore, DLF, directly or through its affiliates, plans to acquire rights and interests in the remaining portion of the Identified Land through separate binding agreements with the bond issuer and its Land-Owning Companies/affiliates. The transaction represents a significant move by DLF to strengthen its land portfolio and strategic interests.

EQUITYBULLS