DLF to Raise IPO in Next Quarter

September 19, 2007	(2 votes, average: 5 out of 5)  Loading ...
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DLF, India’s largest real estate company, is all set to raise $2 billion (about Rs 8,200 crore) in Singapore.

DLF Group’s property fund, DLF Assets Pvt. Ltd (DAL), will be listed as a Real Estate Investment Trust (REIT) in Singapore in October. The company has a portfolio of Special Economic Zones (SEZs) and IT Parks.

The company had sold some of its leased commercial properties to DAL. The latter has already made the payment of around Rs 2,400 crore to DLF against a total consideration of Rs 4,000 crore. The fund has plans to offer a considerable part of its equity to the public to raise the money to pay off DLF.

As such, DLF has the plans to sell leased commercial spaces to DAL in future. REIT offers an excellent way to invest in real estate and requires offering 90 per cent of the income, which may become taxable in hands of real estate investors.

The structure of the REIT has been designed to offer a mutual fund like structure for making real estate investments. At present, the REIT, however, is not allowed in India.

To have the capital back raised by an Indian firm’s REIT at Singapore, the real estate project has to follow the FDI norms or the norms laid by the Special Economic Zone Act, informs a company source.

News Published Under:   Real Estate Developers |

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