DLF And Everstone Join Hands In Deal That Will Give Their Joint Venture 40% Economic Interest In IREO Companies

DLF Ltd is preparing to invest ₹3,750 crore in a proposed joint venture with Everstone Group, with IREO Group's Indian businesses at the centre of the deal.

In a regulatory filing on Friday, 6 November, the company said the two groups had entered into a binding and exclusive term sheet to form the venture. The proposed joint venture (JV) will invest in IREO's real estate businesses across India. DLF will hold a majority stake in the venture, while Everstone's proposed investment amount has not been disclosed.

The DLF-Everstone Joint venture will bring together DLF's real estate development experience and Everstone's global investment capabilities.

How Will The DLF-Everstone Deal Work?

DLF will hold a majority stake in the proposed JV, with Everstone Group as its other partner.

Meanwhile, the joint venture intends to acquire a direct stake of at least 20% in IREO Private Limited and other Indian companies belonging to the IREO Group. Along with certain governance-related rights, this investment will give the JV an aggregate economic interest of approximately 40% in these businesses. The IREO Funds will retain the remaining interest.

The companies will operate under an independent management team, which will be responsible for implementing an agreed business plan. DLF and Everstone will guide the operations through a defined governance framework.

DLF Managing Director Ashok Kumar Tyagi said the partnership would combine industry experience with international investment capabilities to unlock the growth potential of IREO's Indian businesses.

As a result, DLF shares closed 3.5% higher at ₹745.20 on Thursday. On Friday, around 10:33 AM, the stock was trading slightly lower at ₹740.10, down 0.68%. However, it has gained around 12% over the past month and has also moved into positive territory on a year-to-date basis.

What Makes IREO Group Important For DLF?

IREO Group owns large tracts of land in Delhi-NCR, along with plots in a few other Indian cities. DLF has also dealt with the group before, having purchased a large parcel of land from it in Gurugram.

The latest arrangement will give it an opportunity to gain exposure to a wider portfolio of IREO's Indian real estate businesses.

Everstone Co-Founder and CEO Sameer Sain said the group was pleased to partner with DLF, citing the developer's capabilities and its understanding of the Indian real estate market.

DLF, which is India's largest real estate developer by market capitalisation, expects the transaction to be completed in 2027, subject to due diligence, regulatory approvals and other customary closing conditions.

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