DLF has already entered into a nonbinding term sheet with a fund managed by Hines through its wholly-owned subsidiary DLF Home Developers.
The DLF subsidiary will hold 51% stake in this partnership, while the rest will be held by the fund managed by Hines.
The 12-acre plot located close to DLF Cybercity has total development potential of 2.5 million sq ft. The deal values the land parcel at over Rs 127 crore per acre, the highest ever price at which any entity has valued any plot in Gurgaon.“Hines is looking to expand its business in India, and is in advanced conversations with DLF, among other companies,” a Hines spokesperson responded to ET’s email query regarding the deal. Email query to DLF remained unanswered till the time of going to press.
Last year, DLF had acquired the plot for about Rs 1,500 crore after emerging as the highest bidder for the land parcel put on the block by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) in a closely contested e-auction.
In October, the company’s subsidiary had signed a non-binding term sheet with Hines for this project. However, the financial terms of the deal are getting finalised now. The company had not disclosed any financial details of the alliance with Hines then as the deal was still being negotiated.
This was an unprecedented price paid ever for a land parcel in the Gurgaon property market. The deal was concluded at a base price of over Rs 127 crore per acre that surpassed all earlier benchmarks.
The project proposed on this land parcel is expected to have a mixture of high-street retail and Grade A offices. According to property consultants, the current selling price in the vicinity for commercial development hovers around Rs 25,000 per sq ft that translates into a revenue potential of Rs 6,250 crore from this project.
This will be the second instance of a development alliance between DLF and Hines. Both entities have earlier developed Horizon One in DLF5, Gurgaon. Hines was a joint venture partner in the 8.50 lakh sq ft development that includes high-end commercial space and a retail and food & beverages hub, Horizon Plaza. The complex counts global corporations such as Coke, Apple and Samsung as key tenants.