(MUMBAI) Indian real estate firm DLF is buying out the stake held by a property unit of debt-laden Dubai World in an equal joint venture in India for about two billion rupees (S$58 million), The Economic Times reported yesterday.
A unit of DLF will buy the stake owned by Limitless Group, part of Dubai World, in Bidadi Knowledge City in southern Karnataka state, the newspaper said, citing a person with direct knowledge of the transaction.
Dubai World is currently restructuring US$23.5 billion in debt. Limitless said in April 2009 that it was reviewing a US$12 billion residential and commercial project in India because the authorities there had not bought the required land.
India's DLF and Limitless won the contract to build the Bidadi development on the outskirts of Bangalore in October 2007.
'Under the agreement, government agencies are responsible for the land acquisition,' a Limitless spokeswoman said in a statement at the time. 'Unfortunately, after 18 months, the land acquisition has not advanced. As a result, Limitless and DLF have notified the government that they are reconsidering their position.'
A spokeswoman from Limitless in Dubai declined to comment on the news report yesterday, pointing to the company's statement from last year.
A representative from DLF was not immediately available for comment. -- Reuters
Source: Business Times, 27 Jul 2010