NEW DELHI: Another DLF company may hit the capital market over the next one year. DLF Group subsidiary DLF Assets may go public next year or get converted into Real Estate Investment Trust (REIT). It is at present awaiting Sebi’s guidelines on REITs. DE Shaw, the leading US hedge fund with over $30 billion in assets, has recently invested $400 million in DLF Assets.
Senior executives from DLF group said DLF Assets could also invest in properties in India and abroad. Till date, DLF Assets has only bought property assets from the DLF Group. The company would soon start buying large block of properties in India from other parties. “We would buy full complexes and buildings. Currently, we are not interested in buying floors or spaces in commercial or residential complexes,” a senior executive from DLF Assets said. The conversion of the asset company into REIT, apart from mopping up funds for the company, would also allow small investors to invest in real estate thus increasing their exposure.
REITs, common in several developed countries, are generally open or close-ended companies/trusts that hold, manage, lease, develop and maintain properties for investment purposes. They are often, but not necessarily, traded on an exchange. The value of units/stock allotted to investors is computed on a NAV (net asset value) basis, as the market value of assets minus liabilities. REITs invest in real estate directly, through properties or mortgages, or indirectly through subsidiaries.
http://economictimes.indiatimes.com/Markets/Stocks/IPOs/DLF_arm_may_go_the_parents_way/articleshow/2088151.cms
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