DLF and Singapore-based investment manager Everstone Group have signed a binding and exclusive term sheet to form a joint venture that will invest about ₹3,750 crore in IREO Private Limited and other IREO group companies in India, opening a new route for development projects in Delhi, Gurugram and other regions.
Under the proposed arrangement announced on Friday, DLF intends to invest about ₹3,750 crore for a majority stake in the joint venture. The parties have also signed a separate binding and exclusive term sheet with the IREO Funds, under which the joint venture plans to acquire at least a 20 per cent stake in the IREO India Companies along with certain governance-related rights.
The joint venture’s total economic interest, including contractual and other interests, is expected to be about 40 per cent. The IREO Funds will retain the remaining interest, according to the companies.
DLF said the proposed transaction is intended to help unlock the growth potential of IREO’s Indian businesses. “We are pleased to partner with Everstone Group on this strategic investment. Bringing together strong industry experience and global investment capabilities, we look forward to unlocking the growth potential of the IREO India Companies,” DLF managing director Ashok Kumar Tyagi said.
The companies said the IREO India Companies would, after completion of the transaction, be managed by a “strong, independent management team” executing an agreed business plan under a governance framework guided by DLF and Everstone. The stated objective is to restore momentum and build a stronger business.
The announcement did not specify whether the proposed projects would be residential or commercial. It also did not provide details of individual sites, development timelines, construction plans or the total land area associated with the IREO companies. The proposed investment instead involves existing companies that own land and have development potential, rather than a joint venture created to develop one specific project.
The transaction remains subject to customary closing conditions. These include satisfactory completion of due diligence, corporate, regulatory and third-party approvals, as well as the execution of definitive agreements. Closing is expected during 2027.
Everstone chief executive officer and co-founder Sameer Sain said the group was partnering with DLF because of its capabilities and market understanding. “Consistent with our fiduciary responsibilities, we look forward to working hard and creating significant value for our IREO Funds investors,” he said.
For the urban development markets involved, the immediate significance of the announcement is that a major developer and an investment manager are seeking to take an interest in land-backed companies with development potential. However, the eventual impact on housing supply, commercial space or project delivery will depend on due diligence, approvals, definitive agreements and the projects ultimately selected for execution.
DLF has previously partnered with US-based Hines to develop commercial projects through a joint venture. The proposed Everstone partnership differs in structure because it involves investment in existing IREO companies, with the joint venture expected to exercise governance-related rights and hold an economic interest across those businesses. The next formal milestones are the completion of due diligence, receipt of required approvals, signing of definitive agreements and the expected closing in 2027.
