NEW DELHI: DLF, the country’s largest real estate developer, is in discussions with Bharti Realty to acquire under-construction phases of Aerocity in Delhi with a total development potential of 17 million sq ft, according to three sources familiar with the matter.
About 5 million sq ft of the total portfolio will be retail, and once completed, the project is expected to generate an annual rental income of ₹5,000 crore.
The first phase of Aerocity was also developed by Bharti, but later Canada’s Brookfield Asset Management acquired a 51% controlling stake in Rostrum Realty, a real estate joint venture company in which Sunil Mittal-led Bharti Enterprises holds the remaining 49%. “GMR has the lease for the entire area until 2066, and when the bid was invited for the first time, DLF participated, but it was awarded to Bharti. It has again initiated the process to acquire the asset to further strengthen its rental portfolio,” said one person familiar with the matter.
Sources said that the company is likely to create a special purpose vehicle (SPV) as part of the deal structure. DLF Cyber City Developers (DCCDL), the rental arm of DLF, is likely to take care of the asset, as it already operates close to 40 million sq ft across the country.
“We do not comment on market speculation,” a DLF spokesperson said, when ET sought comment on the story. Bharti Realty did not respond to an email query. Bharti Realty has already started the development of approximately 6.5 million sq ft with an investment of more than ₹6,595 crore (approximately $794 million) to turn the project into a global business hub.
About 3 million square feet of it will be retail, including one of the biggest malls in the region.
In the subsequent phases, a balance of about 10 million square feet will be developed, of which about 2 million square feet will be retail. In the initial phase, Bharti Realty successfully built Worldmark 1, 2, and 3, covering around 1.5 million square feet.
These properties are now under the ownership of Rostrum Realty, a joint venture between Brookfield and Bharti Enterprises.
Each office tower will include a retail component, in addition to a separate mall, and there will be room for more than about 10,000 parking spaces.
The company plans to commence providing possession starting from the conclusion of 2024.
The new expansion will bring the Worldmark portfolio to include fresh assets named Worldmark -4, Worldmark -5, Worldmark -6, Worldmark, and Worldmark-7.
Collectively, these additions will form a commercial precinct, offering around 3.5 million square feet of leasable area. This new precinct will be nearly three times larger than the existing Worldmark assets.
The new Worldmark assets are part of approximately 60 acres of integrated development.
