NEW DELHI: Realty main DLF’s rental arm DCCDL on Friday stated it has appointed consultants, together with banker, tax advisor and regulation agency, to arrange itself for the launch of its Real Estate Investment Trust (REIT) however the timing of the general public problem can be determined by its shareholders. DLF Cyber Metropolis Builders Ltd (DCCDL) is a three way partnership between DLF Ltd and Singapore sovereign wealth agency GIC. Whereas DLF holds 66.67 per cent stake within the JV, the GIC has 33.33 per cent shareholding.

“The timing of launch of REIT can be determined by the 2 shareholders — DLF and GIC. The administration has taken a choice to be REIT-ready. We’ve employed banker, authorized agency and tax guide to arrange ourselves for the REIT,” DLF’s MD (Rental Business) Sriram Khattar advised analysts in an traders name.

The timing of launch of REIT will rely upon many elements together with interest rate and cap charges, he stated.

DLF’s entire time director Ashok Tyagi stated the consultants have been appointed to restructure the enterprise and be able to launch the REIT at any time when the 2 shareholders determine.

In an traders presentation, DLF listed out that there are beneficial market indicators for REIT itemizing comparable to sufficient liquidity in capital markets, low rate of interest regime, environment friendly itemizing framework by the regulator and profitable itemizing of two REITs.

DCCDL has appointed Shardul Amarchand Mangaldas & Co as authorized advisor, Morgan Stanley as banker and KPMG as monetary/tax advisor.

“Deliberations being finished on key factors: company construction, capital construction and asset perimeters. Completion anticipated in round 12 months,” the presentation stated.

The DCCDL has rent-yielding business belongings of round 35 million sq ft, with about Rs 3,500 crore annual rental earnings.

DLF had shaped a three way partnership with GIC in December 2017 after its promoters offered their complete 40 per cent stake within the 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 value about Rs 3,000 crore by the DCCDL.

In India, there are two listed REITs — Embassy Workplace Parks REIT and Mindspace Enterprise Parks REIT.

The primary REIT of Rs 4,750 crore problem dimension was listed in April 2019 by Embassy group and Blackstone backed Embassy Workplace Parks. In August final yr, Ok Raheja and Blackstone backed Mindspace Enterprise Parks launched the nation’s second REIT to boost Rs 4,500 crore.

World funding agency Brookfield is launching subsequent week the nation’s third REIT to boost Rs 3,800 crore.

Actual property funding belief (REIT), a preferred instrument globally, was launched in India a couple of years in the past aimed toward attracting funding in the true property sector by monetising rent-yielding belongings. It helps unlock the large worth of actual property belongings and allow retail participation.


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