BackDLF to raise Rs3,500 crore via office-asset backed securities
Three properties under proposed CMBS would be office buildings and not retail malls, says DLF executive director
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New Delhi: Realty giant DLF plans to raise upto Rs3,500 crore this fiscal through issue of securities backed by commercial assets, after successfully raking in Rs525 crore via India’s first commercial mortgage backed securities (CMBS).
“We plan to have 3 more properties under CMBS. We are targeting to raise another Rs3,000-3,500 crore through CMBS," DLF executive director finance Saurabh Chawla said.
Chawla said the three properties under proposed CMBS would be office buildings and not retail malls of the country’s largest realty firm.In an analyst call, Chawla, however, said the new Companies Act makes it far more difficult to bring such products.
The new offerings would be over and above the Rs525 crore already raised and another issue of Rs375 crore in the pipeline backed by another mall in Delhi ‘DLF Promenade’.
On 23 May, DLF had said it raised Rs525 crore through CMBS backed by luxury shopping mall ‘DLF Emporio’ in the national capital. The CMBS carries a coupon rate of 10.9%.
In an analyst presentation, DLF said it would continue to focus on opportunities to improve quality and tenure of debt such as through issuance of CMBS etc.
DLF’s net debt stood at Rs18,526 crore as on 31 March 2014 — a drop of Rs1,400 crore from Rs19,926 crore at the end of the December 2013 quarter. The company’s finance cost stood at nearly Rs2,500 crore last fiscal.
In CMBS, funds available with the issuer during the tenure of the instrument are higher than lease rental-discounting loans from banks. These loans have a structure where principal repayment is amortised, while CMBS will have a bullet repayment.
On Thursday, DLF reported a consolidated net profit of Rs219.68 crore for the quarter ended March, 2014 on the back of gains from sale of hotel chain Amanresorts. It had registered a net loss of Rs4.19 crore in the year-ago period.
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