DLF to launch first Reit by current financial year
Both financial and strategic investors have approached DLF in this regard
May 22, 2015
Source : Business Standard

 

 
Mumbai: The country’s largest property developer DLF is working on launching its first real estate investment trust (REIT) by pooling together its office properties by the end of the current financial year.
 
“Both financial and strategic investors have approached DLF in this regard,” the company said in a presentation. The government has recently issued clarification of minimum alternate tax (MAT), which is expected to give a boost to the launch of REITs.
 
“With REITs in place, we would want to wind down the debt of our rent company in the next four to five years,” Ashok Tyagi, chief financial officer at DLF, said in a conference call with analysts. As on March 31, 2015, the rent company’s debt was at Rs 14,000 crore.
 
When asked about the ban on DLF on accessing capital markets, Saurabh Chawla, senior executive director, DLF, said: “There is no ban on DLF from assessing capital markets. In our opinion of legal counsel, even if Supreme Court reinstates the ban, it would be on DLF and not on subsidiaries. REITs would be launched by subsidiaries,” Chawla said.
 
Capital markets regulator Sebi has imposed ban on DLF and its top executives from accessing the capital markets for three years, for suppressing information in its initial public offering (IPO) prospectus and for sham transactions.
 
DLF moved Securities Appellate Tribunal, the latter quashed the order, following which Sebi moved Supreme Court on Sebi order.
 
DLF is also looking to bring in private equity investors to raise as much as Rs 3,000 crore in its upcoming projects.
 
“The company plans to bring in marquee private equity investors at the project level thereby mitigating market risks whilst sharing financial returns,” the company said.  
 
It is looking at new phases in its existing projects in the current financial year. “It will be pure equity transactions we are planning. It will be joint development,” said Chawla.
 
...deposits Rs 525 cr with apex court
 
DLF has deposited Rs 525 crore with the Supreme Court and will pay the balance by early July to comply with the apex court’s direction to deposit Rs 630 crore fine slapped by fair trade regulator Competition Commission of India.

Latest Realty News

400-Manesar-residents-protest-DLF-construction-alleging-‘SC-order-violation’
May 22, 2015
GURGAON: High drama prevailed in Manesar when local residents gheraoed around 150 workers for allegedly carrying out construction work at a building site of DLF
Motilal-Oswal-real-estate-arm-raises-Rs-500-crore-fund
May 21, 2015
MUMBAI: Motilal Oswal Real Estate, the real estate arm of Motilal Oswal Private Equity, has raised Rs 500 crore through its second property fund
Brigade-Enterprises-to-double-revenue-from-home-sales-in-3-years
May 21, 2015
BENGALURU: Realty firm, Brigade Enterprises is expected to double its revenue from the residential segment
Maha-govt-links-TDR-with-land-prices
May 21, 2015
NAGPUR: Alarmed by the lopsided development of cities, the state government has decided to completely change the system of transfer of development rights (TDR)
High-cost-of-flats,-land-in-Delhi-led-to-unauthorised-colonies:-HC-told
May 21, 2015
NEW DELHI: Delhi's municipal corporations told the High Court that due to high cost of approved flats and plots of land, weaker sections of society resorted to making their homes in unauthorised colonies
DLF-a-dominant-player-in-Gurgaon-market,-says-CCI-official
May 21, 2015
Ne Delhi: DLF was the only major player in Gurgaon and only a dominant player can abuse the market, CCI said
CII-pilot-smart-city-projects-in-Maharashtra,-AP-and-Punjab
May 21, 2015
KOLKATA: The Confederation of Indian Industry (CII) mentored three smart city pilot projects
Maharashtra-govt-bats-for-FDI-in-its-new-housing-policy
May 21, 2015
Mumbai: The Maharashtra government has in its draft of the new housing policy proposed foreign direct investment (FDI) for the development of special townships
Buying-a-home-in-Pune-unlikely-to-get-cheaper,-suggest-realty-studies
May 21, 2015
PUNE: Recent reports have suggested that residential property prices in the city are unlikely to see any major correction
No-land-will-be-acquired-to-favour-corporates:-Amit-Shah
May 20, 2015
NEW DELHI: "Not one inch of land acquired under the proposed new law will be used to favour any company

Latest Realty News Of State

Realty Talk's