A joint venture between India’s largest property developer DLF Ltd and global real estate firm Hines has secured a construction loan of ₹2,600 crore from HDFC Ltd for an upcoming office project in Gurugram.
Last year, Hines and DLF had formed a JV to develop an office project at Udyog Vihar Phase-V at an investment of ₹1,900 crore.
The project will be developed on 11.76 acres owned by the JV, for which DLF had bid a record ₹1,496 crore when Haryana State Industrial and Infrastructure Development Corp. auctioned the land parcel in February 2018.
The developers raised debt at a time when most real estate firms are struggling to raise money leading to construction being either delayed or stalled, particularly in residential projects. Banks and NBFC are also wary of lending to the real estate sector due to prolonged demand slowdown and rising unsold inventories.
“This is a significant development and will augur well for the real estate industry and corporate tenants in India,” said HDFC managing director Renu Sud Karnad.
HDFC was also a financial partner with Hines and DLF for the One Horizon Center at DLF-5 in Gurugram, when the two companies had entered into their first JV in 2008, Karnad said.
The Udyog Vihar project will be developed in two phases, with 2.55 million sq. ft to be built in the first phase. Construction will commence soon, the firms said.
