• <input id="8wm4i"></input>
    <menu id="8wm4i"></menu>
  • <menu id="8wm4i"></menu>
    You are here: Home » Markets ? News
    Business Standard

    DLF-GIC joint venture to be ready for launch of its REIT in 15-18 months

    Realty major DLF's rental arm has started the process of structuring its rent-yielding commercial assets in REIT form but the timing to launch the public issue will be decided by the promoters

    Topics
    DLF-GIC | REIT | Real Estate

    Press Trust of India  |  New Delhi 

    DLF Building

    Realty major DLF's rental arm DCCDL has started the process of structuring its rent-yielding commercial assets in Investment Trust (REIT) form but the timing to launch the public issue will be decided by the promoters.

    DLF Cyber City Developers Ltd (DCCDL) is a joint venture between DLF and Singapore's sovereign wealth fund.

    DLF holds 66.67 per cent stake while GIC has 33.33 per cent stake in the DCCDL, which owns around 33 million sq ft of commercial assets with rental income of over Rs 3,000 crore. GIC had picked up stake in the DCCDL by investing Rs 9,000 crore.

    In a conference call with analysts, DLF director Ashok Tyagi said, "We have started the entire process of making Cyber Park ready".

    He said the company would soon appoint consultants for creating a proper structure of its rental assets.

    Tyagi said it would take 15-18 months in becoming ready, but said the actual timing to launch public issue of would be decided by the two shareholders.

    Besides completed leased assets, he said the DCCDL is developing many assets currently and has huge future pipeline.

    Therefore, Tyagi said, the JV will have to decide proper framework as in the REIT, 80 per cent of the assets should be completed leased asset portfolio.

    DLF's MD (Rental Business) Sriram Khattar said the rental growth this year will remain muted due to COVID pandemic.

    The company's group CFO Vivek Anand said the interest cost in the DCCDL has been reduced significantly and it will come down further.

    In August this year, K Raheja and Blackstone backed Mindspace Business Parks launched the country's second REIT to raise Rs 4,500 crore.

    Global investment firm Brookfield has recently filed document with market regulator SEBI to launch the country's third REIT. The issue size is again over Rs 4,000 crore.

    The first REIT of Rs 4,750 crore issue size was listed in April last year by Embassy group and Blackstone backed Embassy Office Parks.

    Through REIT, developers and institutional investors can monetise their rent yielding commercial properties.

    On Friday, DLF reported a 48 per cent decline in its consolidated net profit at Rs 232.14 crore for the quarter ended September.

    Its net profit stood at Rs 445.83 crore in the year-ago period.

    Total income fell to Rs 1,723.09 crore in the second quarter of this fiscal from Rs 1,940.05 crore in the corresponding period of the previous year.

    (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

    Dear Reader,


    Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
    We, however, have a request.

    As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

    Support quality journalism and subscribe to Business Standard.

    Digital Editor

    First Published: Sat, October 31 2020. 21:45 IST
    RECOMMENDED FOR YOU
    .
    白小姐四肖必选一肖管家婆