In a landmark transaction, DLF Ltd., through its wholly-owned subsidiary DLF Info City Developers (Kolkata) Ltd., has entered into a definitive agreement to sell its Kolkata Tech Park 1 to RDB Primarc Techno Park LLP, an affiliate of the Primarc and RDB groups, for approximately ₹637 crore.
Details of the Transaction
Kolkata Tech Park 1, situated in New Town, Rajarhat, stands as one of eastern India’s largest IT parks, boasting a gross leasable area of around 1.49 million square feet. The facility has been a significant hub for IT and ITeS companies, contributing notably to the region’s technological landscape.
The sale is structured as a slump sale, wherein the business undertaking is transferred on an “as is, where is” basis. This approach allows for the seamless transfer of assets and liabilities associated with the IT park, ensuring continuity for existing tenants and stakeholders.
Strategic Rationale for DLF
Sriram Khattar, Vice Chairman & Managing Director of DLF’s Rental Business, remarked, “This is reflective of the value embedded in our core assets created over the years with good quality tenant partners and asset management. It also demonstrates our commitment to continuously enhance shareholder value.”
DLF’s decision to divest Kolkata Tech Park 1 aligns with its broader strategy to optimize its portfolio and focus on core markets. By monetizing mature assets, the company aims to redeploy capital into high-growth opportunities, thereby enhancing overall shareholder returns.
Implications for Primarc and RDB Group
For the Primarc and RDB groups, this acquisition represents a significant expansion into the IT infrastructure sector. Sidharth Pansari, Managing Director of Primarc Group, expressed enthusiasm about the deal, stating, “We are excited about this transaction which is a pivotal step in our growth and diversification journey. It strengthens our contribution to Bengal’s tech ecosystem, and we will benefit immensely from DLF’s learnings, systems & processes.”
Vinod Dugar, promoter of RDB Group, added, “This step strengthens our joint commitment to supporting Bengal’s dynamic economy through projects that prioritise both sustainability and excellence.”
Market Context and Significance
This transaction is among the largest real estate deals in West Bengal, underscoring the growing investor interest in the region’s IT infrastructure. Kolkata has been emerging as a significant IT hub, with areas like New Town and Salt Lake Sector V attracting substantial investments from both domestic and international firms.
The sale of Kolkata Tech Park 1 is expected to bolster the region’s technological ecosystem by providing state-of-the-art facilities to IT and ITeS companies, thereby attracting more businesses and fostering economic growth.
Future Outlook
DLF’s divestment of Kolkata Tech Park 1 reflects its strategic focus on capital recycling and portfolio optimization. The company is likely to continue evaluating its asset base to identify opportunities for value creation.
For Primarc and RDB, the acquisition provides a platform to enhance their presence in the IT infrastructure sector. Leveraging DLF’s established systems and processes, they aim to deliver high-quality services to tenants and contribute to the region’s economic development.
Overall, this transaction signifies a positive development for Kolkata’s real estate and IT sectors, highlighting the city’s potential as a burgeoning tech hub in eastern India.