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Capital Smart City Merger with DHA: Rumors or The Reality?

DHA Smart City

Many a time we hear rumors about DHA merger with Capital Smart City, and the society being renamed to DHA Smart City, but we never heard any official version of the story from any of the subject parties. Some people took it for granted that the deal was signed and just awaiting announcement, while others thought it to be a kind of far-fetched development or something in discussions only. In fact, neither were correct, and the reality lies somewhere in the middle.

About 2 months ago, RDA conducted operation against illegal housing schemes on Chakri Road. The press release included the name of Capital Smart City also in the list of such schemes, which caused some serious concerns for us all. After a couple of days, FDH wrote a letter to RDA to explain that its name was wrongly used in the press release and it had acquired the NOC. In the same letter, FDH informed RDA about its ongoing negotiations with DHA regarding partnership on share-holding basis.

Following is a copy of the FDH letter to RDA:

FDH Letter to RDA for DHA Merger of Capital Smart City

After this news got out, things got even better for Capital Smart City as more people got interested in this housing project for short term gain. People kept hearing rumors of DHA announcing merger of Capital Smart City within few days or weeks, and that all further terms have been negotiated and agreed upon by both the parties. But nothing came about and the state of affairs remained unclear.

On 6th of May 2019, we found a copy of another letter to RDA from DHA which clarified the actual status of this merger story. According to that letter, DHA informed RDA that it had signed framework agreement with FDH regarding joint venture/partnership/merger on 30 November 2018, and further negotiations/due diligence in that regard were underway.

A copy of the DHA letter to RDA is attached below:

DHA Letter to RDA for Merger of Capital Smart City

So, the fact of the matter is that DHA and FDH are currently in the process of finalizing their negotiations on the terms of this merger, and you can hear a big development in this regarding as soon as after Eid in June 2019.

The name of the project is expected to be changed to “DHA Smart City” after signing of Joint Venture Agreement. Management and development of the society is expected to remain with FDH, while DHA may be more like a silent partner in this deal.

It is premature to say what percentage of the shares of Capital Smart City will go to DHA after this agreement, and how this merger will benefit the society . But at the same time, it is quite reassuring to know that it is not merely a rumor but a serious development and people should expect good returns on their investment.

If you need more information on Capital Smart City, feel free to contact us via email at marketing@manahilestate.com or send us whatsapp message at 0345-5222253.