DLF signs deal with UAE developer for $20 billion India venture

27 March 2007

Mumbai: DLF, India's largest real estate developer, has entered into an agreement with Al Nakheel group of the United Arab Emirates to develop two integrated townships in the suburbs of Mumbai and New Delhi, involving investments of $20 billion.

The companies will initially invest $5 billion each over the next three years to build complete townships at unspecified locations in India, company sources said.

The 50:50 joint venture would capitalise on India's real estate boom to build the townships across 40,000 acres of land.

Reports said, New Delhi-based DLF and UAE's leading real estate developer Nakheel have already acquired about 70 per cent of the land needed to set up the townships, which will include commercial and residential centers.

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 for its ambitious expansion plans.

DLF said it planned to raise $2.2 billion via an IPO in 2007, down from the $2.98 billion of shares it proposed to sell in August 2006. This was withdrawn after major investment banks said the company's plans were unrealistic.