DLF (Delhi Land & Finance), India's leading real estate developer, is negotiating with Bharti Realty to acquire the under-construction phases of Aerocity in Delhi, as disclosed by three sources familiar with the matter. This potential deal involves a total development scope of 17 million square feet, with approximately 5 million sq ft dedicated to retail spaces. The project is anticipated to yield an annual rental income of Rs 500 billion upon completion.
Initially developed by Bharti, the first phase of Aerocity saw Canada's Brookfield Asset Management acquiring a controlling 51% stake in Rostrum Realty, a real estate joint venture. Despite DLF's participation in the initial bid, Bharti secured the project. However, DLF has now reignited discussions to fortify its rental portfolio.
It is speculated that DLF may establish a special purpose vehicle (SPV) as part of the transaction structure, potentially entrusting DLF Cyber City Developers (DCCDL), its rental arm, with the management of the asset. DCCDL currently oversees nearly 40 million square feet of properties across the country.
Responding to inquiries, a DLF spokesperson declined to comment, stating, "We do not comment on market speculation." Meanwhile, Bharti Realty remained unresponsive to email queries.
Bharti Realty has initiated the development of approximately 6.5 million sq ft within Aerocity, with an investment exceeding Rs 659.5 billion (roughly $794 million). This endeavour aims to transform the project into a global business hub, with around 3 million sq ft allocated for retail, including one of the region's largest malls.
The subsequent phases will see the development of approximately 10 million sq ft, with 2 million square feet dedicated to retail spaces. In the initial phase, Bharti Realty successfully constructed Worldmark 1, 2, and 3, encompassing 1.5 million square feet, now under the ownership of Rostrum Realty.
The expansion plans include the addition of Worldmark 4, 5, 6, and 7, collectively forming a commercial precinct offering approximately 3.5 million sq ft of leasable area. These new assets, part of a 60-acre integrated development, signify a significant step towards Aerocity's growth and development.