INDIA BUSINESS WORLD - JANUARY 16^th - JANUARY 31^st - 2008

DLF SELLS KENNETH STAKE TO INDIABULLS

DLF Ltd, India's biggest developer, has sold its stake in Kenneth Builders and Developers Ltd. to its equal partner in the venture, Indiabulls Real Estate Ltd. DLF and Indiabulls formed the joint venture in 2006 to develop high-end residential apartments at Okhla in New Delhi. The unit bought its only holding, 35.8 acres (14.5 hectares) of land, for Rs 4.5 billion ($114 million) from the Delhi Development Authority (DDA) in the same year. DLF has reportedly sold it 50% stake in the company to Indiabulls for Rs 500 crore. For Indiabulls, an entry into the booming real estate market of the national capital region (NCR) has been a top priority for sometime now. According to sources, for the last 6-8 months, the company has been scouting for viable land deals in the NCR, mainly in Delhi and Gurgaon. Through its various subsidiaries, Indiabulls is already developing some projects in the NCR, in Gurgaon and Sonepat. However, the project, because of being located within the national capital territory (NCT) could potentially be the financial conglomerate's signature property in North India. The company has a strong presence in the Mumbai real estate market as well as some other parts of Maharashtra.