DLF Limited has entered into a binding term sheet to form a joint venture with Singapore-headquartered Everstone Group. The JV will invest approximately Rs 3,750 crore to acquire a stake in IREO India Companies, aiming for an aggregate economic interest of about 40%. This strategic alliance is expected to unlock growth potential and deliver valuable developments across major Indian cities. Closing is anticipated in 2027.
DLF and Everstone Group Forge Strategic Alliance
DLF Limited, India’s leading real estate developer, announced today that it has entered into a binding and exclusive term sheet with Everstone Group, a global investment manager. The agreement outlines the strategic collaboration to form a joint venture (JV) focused on investing in IREO Private Limited and other group companies in India, collectively known as IREO India Companies. These companies are held by the IREO group of FDI funds.
Significant Investment and Stake Acquisition
Under the proposed arrangement, DLF intends to invest approximately Rs 3,750 crore for a majority stake in the JV. This JV will then hold a significant economic interest in the IREO India Companies. A separate agreement with the IREO Funds stipulates that the JV will invest these funds to acquire a stake of at least 20% in the IREO India Companies, along with certain governance rights. The JV’s aggregate economic interest in the IREO India Companies is projected to be approximately 40%, with the IREO Funds retaining the balance.
Strategic Opportunities and Future Outlook
The proposed transaction is seen as a compelling opportunity to deliver high-quality developments across Delhi, Gurugram, and other regions, leveraging the size, scale, and strategic locations of the IREO India Companies. Upon completion, these companies will be managed by an independent team under a robust governance framework, guided by DLF and Everstone. This alliance combines DLF’s development expertise with Everstone’s investment management capabilities to restore momentum and unlock embedded growth.
The transaction is subject to customary closing conditions, including satisfactory due diligence and regulatory approvals. The closing is expected to occur during 2027.
Management Commentary
Ashok Kumar Tyagi, Managing Director of DLF, expressed enthusiasm for the partnership, stating, “We are pleased to partner with Everstone Group on this strategic investment. Bringing together strong industry experience and global investment capabilities, we look forward to unlocking the growth potential of the IREO India Companies.”
Sameer Sain, Co-Founder & CEO of Everstone Group, added, “It’s our privilege to partner with DLF, especially given their incredible capabilities in a market they understand extremely well. Consistent with our fiduciary responsibilities, we look forward to working hard and creating significant value for our IREO Funds investors.”
Source: BSE
