DLF Says No Plans to Launch REIT Public Offer in Next 12 Months

Real property main DLF has no plans to launch public provide of REIT in the subsequent one yr to monetise its rent-yielding business properties, its CEO Ashok Tyagi mentioned. DLF holds bulk of its rental belongings (workplaces and purchasing malls) by three way partnership agency DLF Cyber City Developers Ltd (DCCDL).

DLF holds 66.67 per cent stake in DCCDL, whereas Singapore sovereign wealth fund GIC has 33.33 per cent shareholding. In the final two years, DCCDL has accomplished all homework to be prepared to checklist its Real Estate Investment Trust (REIT) on inventory exchanges by launching an Initial Public Offering (IPO).

DLF’s high administration has been sustaining that the timing for REIT shall be determined by the 2 three way partnership companions. “We usually are not in a rush. There is not any plan to launch REIT in the subsequent one yr,” Tyagi informed PTI when requested concerning the firm’s technique relating to proposed launch of REIT.

The decision comes amid global uncertainties and high interest rates regime.

In January 2021, DCCDL had appointed Shardul Amarchand Mangaldas & Co as legal advisor, Morgan Stanley as banker and KPMG as financial/tax advisor to create right corporate and capital structures for the proposed launch of REIT. DLF’s arm DCCDL has become REIT-ready now and will wait for the conducive market conditions to launch the public offer.

“There is no change in the plan or the direction and I think both GIC and we are reasonably committed to the entire thing, but given the high interest rate scenario currently going on and the overall uncertainty, this obviously is not the best time for a new REIT,” Tyagi had informed in an buyers name in December 2022.

DCCDL has rent-yielding workplace and retail properties of round 40 million sq. toes with an annual rental earnings of round Rs 4,000 crore.

In December 2017, DLF had shaped a three way partnership with GIC after its promoters offered their whole 40 per cent stake in DCCDL for almost Rs 12,000 crore.

This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares price about Rs 3,000 crore by DCCDL.

In India, there are three listed REITs — Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust.

The first REIT of Rs 4,750 crore problem measurement was listed in April 2019 by Embassy group and Blackstone-backed Embassy Office Parks.

In August 2020, Ok Raheja and Blackstone-backed Mindspace Business Parks launched the nation’s second REIT to elevate Rs 4,500 crore.

Global funding agency Brookfield has listed the nation’s third REIT after elevating Rs 3,800 crore by an IPO.

Real property funding belief (REIT), a preferred instrument globally, was launched in India just a few years in the past to entice funding in the actual property sector by monetising rent-yielding belongings.

It helps unlock the large worth of actual property belongings and allow retail participation.

In November final yr, world funding agency Blackstone-sponsored Nexus Select Trust filed the draft paper with market regulator SEBI to launch India’s first public problem of retail-assets backed REIT to elevate round USD 500 million.

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(This story has not been edited by News18 employees and is printed from a syndicated information company feed)