More info about the new deal. Adrian to stay on, etc...

Bloomberg - 11/27/07

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DLF to Partner Amanresorts Founder in Luxury Segment (Update1)

By Sumit Sharma

Nov. 27 (Bloomberg) -- DLF Ltd., India's biggest property developer, will partner Amanresorts founder Adrian Zecha to acquire a controlling stake in the luxury resorts chain to tap the growing number of affluent tourists across Asia.

New Delhi-based DLF and Zecha will pay an equal part of the $400 million for the acquisition, which includes $150 million of debt, DLF said in a statement to the Bombay Stock Exchange. DLF is owned by Kushal Pal Singh, described by the Forbes magazine as the world's richest property tycoon with a $35 billion fortune.

``With the financial backing of DLF, Amanresorts will now have the resources to significantly scale up its development plans,'' Zecha said in the statement. ``While we expand our global footprint we are committed to preserving and enhancing the distinctive character of the Aman experience.''

DLF, which raised $2.2 billion selling shares in June, is snapping up land across India to build houses, offices and townships as demand accelerates in the world's fastest-growing major economy after China. The company also has a venture with Hilton Hotels Corp. to build 75 hotels in the South Asian nation.

Amanresorts owns and operates 22 luxury resorts across the world, spanning Phuket, Bali, Pacific islands, the U.S. and India, according to the statement. The projects were designed by architects including Ed Tuttle, Kerry Hill and Jean-Michel Gathy.

`Will Add Value'

``It's an investment that will add value to DLF in the long term,'' K.D. Mehru, vice president research at brokerage Darashaw & Co. said in a telephone interview from Mumbai. ``I would certainly buy this stock, it's a long-term buy.''

DLF last month said it plans to raise $1.5 billion from overseas investors to fund construction and acquisitions. The developer has forged partnerships with at least two overseas companies in the past four months. In August, it formed a joint venture with Hines, a closely held U.S. property investor, to develop an office, retail, hotel and entertainment project on a 15-acre site in Gurgaon, on the outskirts of New Delhi.

Four Seasons Hotels Inc. will manage a luxury hotel being built by DLF Ltd. in Gurgaon, for about 5.5 billion rupees, the Economic Times said in August, citing people it didn't identify.

More Indians are getting affluent in an economy poised to grow 9 percent in the year to March 31, following from an average 8.6 percent growth in the previous four years, according to central bank data.

India's Millionaires

Entrepreneurs from the fields of software, pharmaceutical and telecommunications are also emerging as millionaires as they cater to customers across the globe. Rising prices of stocks and property has also increased wealth of individuals. The benchmark Sensex index has doubled over the past two years.

The number of millionaires in India rose by a fifth to about 100,000 last year, the second fastest in Asia after Singapore, according to a survey by Merrill Lynch & Co., Inc, and Cap Gemini SA.

DLF shares have surged 71 percent since its listing in July, compared with a 29 percent gain in the benchmark Sensitive Index in that period. The stock was included in the 30-member gauge from Nov. 19.

In October, the company won an order along with Dubai World to develop a $15 billion township near Bangalore, India's Silicon Valley that's home to Infosys Technologies Ltd. and Wipro Ltd., the nation's second- and third-biggest software companies.

The company, which has land reserves that can be developed into 738 million square feet of projects, also is involved in special economic zones and infrastructure projects.

``We are delighted at this unique opportunity to become a partner in one of the world's leading hospitality and lifestyle brands,'' Rajiv Singh, vice chairman of DLF said in the statement. ``We look forward to working closely with the founders and management of this business to further enhance its leadership position in the industry.''

Overseas Hotels Ltd., a subsidiary of DLF, is making the investment in Amanresorts, the company said.

To contact the reporter on this story: Sumit Sharma in Mumbai at [email protected] .