Released on: March 25, 2008, 4:18 am

Press Release Author: George Gonigal

Industry: Real Estate

Press Release Summary: In order to leverage opportunities in the middle-income
housing segment, country\'s largest real estate company DLF Limited and investment
major Merrill Lynch have tied up hands to develop residential townships in Chennai.


Press Release Body: In order to leverage opportunities in the middle-income housing
segment, country\'s largest real estate company DLF Limited and investment major
Merrill Lynch have tied up hands to develop residential townships in Chennai.

As per industry estimates, about 2-lakh residential units will be built for the
middle income group in seven big cities. The cost of such units would be between Rs
10-Rs 25 lakh.

For the purpose, DLF Limited has diluted 49 per cent equity stake at a premium, in
seven residential projects to a Merrill Lynch & Co. entity in consideration of Rs
1481 crore. The move has created waves of excitement in the Chennai Real Estate
markets that has potential to be a strong base for launching such initiatives.

Along with Chennai, middle income residential projects, will also be developed in
Bangalore, Kochi and Indore. According to industry sources, these projects scheduled
to be completed in 7-8 years would be able to supply a considerable space in the
residential segment.

In a related but separate transaction, DLF has also diluted 49 per cent of its
equity stake at a premium, in another middle-income residential properties project
in Panchkula, Haryana to Brahma Investments, for a consideration of Rs 194 crore.

Speaking on the development, Mr TC Goyal, MD, DLF Ltd, said, \"as a part of its
strategic objective, DLF continues to remain focused on keeping its net economic
interest in residential property business to a ten year development horizon.
Accordingly, these two transactions shall help DLF unlock its investments in land
resource for the eight projects and also help in increasing rate of return to DLF
shareholders. Besides resulting in positive NAV accretion for DLF, the transactions
would provide good returns for the PE investors.\"

Mr Timothy Grady - MD & Head Global Commercial Real Estate Asia Pacific, Merrill
Lynch said \"we are delighted to partner DLF for their focused expansion in the
residential property segment. This partnership and these projects reflect our
continued support and belief in India.\"

For more details on Chennai Real Estate log on http://www.magicbricks.com/

Web Site: http://www.magicbricks.com/

Contact Details: george.gonigal@gmail.com