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DLF Assets to raise PE funds

DLF Assets to raise PE funds
PTI
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First Published: Wed, Jan 28 2009. 03 40 PM IST
Updated: Wed, Jan 28 2009. 03 40 PM IST
New Delhi: K.P. Singh-promoted DLF Assets Ltd, which plans to raise over Rs2,000 crore from private equity investors is likely to finalise the deal in the next one month.
According to people familiar with the issue, the talks with few private equity players are in advance stage and the company expects to close the transaction within a month. Earlier, it had said that funds would be raised by December last.
DLF Assets has been set up to acquire commercial projects of DLF — the country’s largest realty firm. It would utilise the funds to make part-payment to DLF. At present, it owes about Rs4,800 crore to DLF.
DLF vice-chairman Rajiv Singh had said on 31 October,“If all goes well, we can expect to receive in excess of Rs5,000 crore by the end of this financial year for assets from DLF Assets in some mixture of debt and equity.”
DLF Assets’ current rented portfolio is 4.7 million sq feet, which is expected to grow to 10 million sq feet by March 2009, yielding rentals of Rs600 crore per annum.
The company had raised over $1 billion so far from private equity to purchase properties from DLF.
In 2007, DLF Assets raised $400 million from global investing firm D E Shaw. Another $200 million was raised from a fund sponsored by investment banking firm Lehman Brothers, which later sold the stake to SC Asia. Last year, it raised $450 million from Symphony Capital.
The company had deferred its plan to raise about $2 billion from an IPO in Singapore. “While steps to monetise DLF Assets through the next round of equity funding have overshot the originally set timeline, teams continue to work on it,” Singh had said.
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First Published: Wed, Jan 28 2009. 03 40 PM IST