By innovative | 23 Nov, 2020
The Pall of Happiness Between DLF and GIC Joint Venture
The development of real estate has been in rampant stages for the regions in Delhi NCR. One can witness several buildings of the Indian giant, DLF, sprawling across lanes and streets. The brand value of DLF is such that every residential or commercial project goes directly under its belt and takes the shape of the perfect masterpiece.
Amidst this popularity, DLF signed a joint venture with the Singaporean wealth fund GIC and would be receiving a cash flow of INR 1250 crores over the next four years for real estate development within NCR.
Effects of the good news
With this investment, the nation's real estate development is sure to boost, and it can be defined as the primary effect or change. Some of the detailed analysis for this include the following:
- This joint venture is supposed to enhance the flexibility of operation between the two firms and set up a long-term relationship between them (with the hopes of DLF launching its projects in Singapore too).
- This venture would be selling ready-made commercial buildings to different businesses to set up their units or take up lands from them to create development projects of its own. Thus, it would be focusing on both fresh and acquired developments.
- The residents of Moti Nagar would be the ones getting the maximum benefits out of this venture. Before this sign-up, GIC had also invested INR 2000 crores in acquiring DLF's 50% shares in the upcoming real estate project coming for that region. The overall land space for this project would be 7 million sq. ft. It would be commissioned equally amongst both parties.
- The DLF Capital Greens project of Sivaji Marg would also benefit from these, as it would be based on the green concept within the real estate. The facilities would have a wide range, and all of these would be coming within the lush greenery set up within the region. It is an important move to beat the pollution blues caused within the National capital and its accessory regions.
- DLF One Midtown New Delhi would be getting the solar expertise from Singapore, setting up the same for light street solutions, wastewater management, and irrigation of the community's plants. Another kudos to the joint venture for creating a new green project.
The impact on the business model
Apart from the gains on these projects, the joint venture is also supposed to impact the overall business model of DLF. The following steps ensure the same:
- Cutting off the regulatory risks or project delay costs that have been happening many times due to the industry's crunch of skilled workforce.
- Setting up the best-selling plans to the final consumers after the development is finished.
- Gaining more green projects under the belt and sorting out the issue of Delhi pollutions greatly.
Therefore, on an ending note, this joint venture is sure to take DLF to new heights within India's real estate industry and project it as the leading giant.