DLF to invest Rs 3,750 crore for majority stake in JV with Everstone for IREO assets

New Delhi: Realty major DLF will invest Rs 3,750 crore to secure a majority stake in a joint venture with EverstoneGroup, a Singapore-headquartered global investment manager, to invest in IREO Private Limited and other Indian entities of the IREO group.

The joint venture will also invest in other Indian companies held by the IREO group’s foreign direct investment (FDI) funds, which have investments from global investors.

DLF and Everstone entered into a binding and exclusive term sheet on November 6. The proposed joint venture will hold an economic interest in the IREO India companies.

Under a separate binding and exclusive term sheet signed by the parties and the IREO funds on the same date, the joint venture intends to invest in the funds to acquire a stake of at least 20% in the IREO India companies, along with certain governance-related rights.

Through the proposed transaction, the joint venture will have an aggregate economic interest, contractual and otherwise, of about 40% in the IREO India companies, with the IREO funds holding the balance.

“Bringing together strong industry experience and global investment capabilities, we look forward to unlocking the growth potential of the IREO India companies,” said Ashok Kumar Tyagi, managing director, DLF.

With their scale and strategic locations, the IREOIndia companies offer an opportunity to develop high-quality projects across Delhi, Gurugram and other regions.

“DLF’s association with IREO has the potential to be a game changer for Gurugram’s real estate market. Beyond unlocking IREO’s strategically located land bank, DLF brings unmatched development credentials and one of India’s strongest corporate occupier networks. Its ability to attract marquee multinational tenants could create a multiplier effect for the entire Golf Course Extension Road corridor, benefiting quality new commercial assets across developers,” said Vibhor Jain, Founder & CEO, CG Offices.

The proposed transaction is subject to customary closing conditions, including completion of due diligence, receipt of applicable corporate, regulatory and third-party approvals, and execution of definitive documents. The transaction is expected to close in 2027.

“On completion, the IREO India companies will be operated by a strong, independent management team executing an agreed business plan within a robust governance framework, under the guidance of DLFand Everstone,” the company said in a statement.

“Consistent with our fiduciary responsibilities we look forward to working hard and creating significant value for our IREO funds investors,” said Sameer Sain, co-founder and CEO, Everstone Group.