DLF-GIC Joint Venture DCCDL Secures Rs. 1,100 Crore via NCDs

DLF Cyber City Developers Ltd (DCCDL), the commercial rental arm of DLF and a joint venture with Singapore’s sovereign wealth fund GIC, has raised Rs 1,100 crore. This was done through a private placement of non-convertible debentures (NCDs).

The company’s securities allotment committee approved the issuance of 1,10,000 NCDs, each worth Rs 1 lakh. These debentures carry an annual interest rate of 6.91%, with interest payments made every quarter.

The DCCDL is a joint venture between DLF and Singapore’s sovereign wealth fund GIC. DLF holds nearly 67 per cent stake in the joint venture firm.

The funds raised will be utilised for the construction of ongoing and future real estate projects, as well as for general corporate purposes. This strategic move aims to bolster DCCDL’s balance sheet and support its expansion plans in the commercial real estate sector.

DCCDL currently manages a substantial portfolio of approximately 44 million square feet of operational office and retail spaces across key cities, including Gurugram. The company reported a 26% increase in net profit to Rs. 593 crore during the June quarter, driven by higher rental income from its commercial properties. Total income for the period grew 12% to Rs. 1,739 crore, compared to Rs. 1,553 crore in the same quarter of the previous year.

The NCDs issued by DCCDL have been rated 'CRISIL AAA/Stable', reflecting the company's strong business risk profile, supported by high occupancy levels and a diversified tenant base. The rating also factors in the company's prudent expansion strategy and the quality of its assets located in prime markets.

This capital raise underscores DCCDL's commitment to maintaining financial flexibility and supporting its growth trajectory in the competitive Indian commercial real estate market.