“The free cash flow generated from DCCDL annuity income shall be judiciously utilised for capital expenditure, deleveraging and increasing dividend flow to its shareholders,” Singh said.

Singapore’s sovereign fund GIC had bought 33.34 per cent in DCCDL for about Rs 90 billion. DLF has the remaining 66.66 per cent stake in the joint venture (JV) firm DCCDL. “DLF’s partnership with GIC has positioned your company for faster growth in the office and retail space. In addition to capturing the growth within DCCDL, your company can continue to develop offices or retail malls outside the JV,” Singh said.

The JV between DLF and GIC Real Estate was set up with a twin objective: to strengthen the balance sheet of DLF and significantly deleverage development business, and to focus on accelerated growth of DCCDL, he said.

Singh said the firm would sell future projects once they attained a degree of progress and reduced uncertainties.

Singh said the development business would be driven by appropriately utilising free cash flow into new projects with high returns and balance free cash flow to build up cash reserves for any potential initiatives.

“Your company today has finished inventory worth approximately Rs 150 billion (net of construction expenses), which it shall continue to sell over a period of time,” he said.

Singh said the company would sell future projects once they attained a degree of tangible progress and reduced uncertainties.

The company has already started construction of residential complex at Capital Greens IV, New Delhi, which is part of 7 million sq ft in another JV with GIC.

“Further, projects are being identified for development, with an objective that inventory available for sale could be continuously replenished in a four-year cycle,” he said.