DLF Cyber City Developers Ltd (DCCDL), DLF’s rental arm, has entered into a securities purchase agreement with US-based Hines Group to acquire a 51.8 percent stake in Fairleaf for Rs 780 crore.

The acquisition will be funded via internal accruals of DLF Cyber City and part debt, said Sriram Khattar, MD of DLF’s rental business.

“We will be working on this in the coming week. I think it will be a combination of internal accruals of DCCDL, the rental arm of DLF, and some level of borrowing. Fine-tuning will be done over the next week,” he said in an interview with CNBC-TV18.

The current rental from One Horizon which is owned and operated by Fairleaf is around Rs 145-150 crore, said Khattar. He expects the rental income to go up to Rs 155-160 crore in the next few months.

He also said that they are looking at making DCCDL REIT ready. However, he said that the company will have to go through some internal restructuring to make it REIT ready.

“We have to go in for some internal restructuring in terms of the subsidiary company, holding company, putting assets in various buckets, etc. I believe this process will take us about 9-12 months,” he said.

On the overall rental market, Khattar expects the business to pick up in the next few quarters. He also does not see the decline in the commercial real estate demand.

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(Edited by : Anshul)