DLF is planning to launch REITs by next year

By Accommodation Times News Service

dlf DLF the real estate company, plans to launch Real Estate Investment Trusts (Reits) in the next financial year. With an aim is to monetise its commercial properties and it is in discussion for partnerships. Its net debt grew by Rs 817 crore during the second quarter of this financial year to Rs 19,944 crore. They are also planning to raise Rs 3,600 crore through an issue of securities backed by commercial assets, to replace costlier debt.
“We are in the process of internally setting up REIT platforms by next year it will be either one or a couple of platforms in office and retail space. We are in discussions with a number of players, strategic and financial. REIT will happen early next fiscal and will happen in our subsidiaries,” executive director (finance) Saurabh Chawla told analysts in a conference call.

“To achieve this, the company is exploring partnership with other global players, both strategic and financial partners, who might have an interest in participating with DLF in this foray. This could include encashing the company’s part investment in the RentCo business,” the company said.

On 13th November,the company reported a 9 per cent rise in consolidated net profit at Rs 109 crore for the quarter ended September. As per the analyst presentation, net debt was Rs 19,944 crore, against Rs 19,127 crore at the end of June.

Of the total debt, the development (housing) business contributed about Rs 6,000 crore and rental business Rs 14,000 crore. It intends to keep the former’s net debt around of the development business range-bound by Rs 1,000 crore across the medium term, through tactical divestments to or joint ventures with investors.

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