Mumbai, 19 September: Billionaire real estate tycoon K P Singh, whose flagship firm DLF recently went public with India’s largest IPO, is looking to list his another closely held group company DLF Assets with a one billion dollar issue.
DLF Assets is expected to file for REIT (real estate investment trust) IPO in Singapore next month, the company sources said. The company was looking to raise about $1 billion from the public issue, they added.
DLF Assets, which has been set up for holding completed commercial assets, is owned by DLF Ltd’s promoters. It is independent of DLF Ltd. DAPL was set up for bidding along with other companies in potential assets sales by DLF Ltd.
Singh, the chairman of DLF Ltd, had announced in May during the roadshows for DLF’s IPO: “Eventually, DLF Assets will be a formidable listed company”. The planned REIT by DLF Assets comes close on the heels of IPO by Ascendas India Trust, a business trust with similar characteristics to a REIT, in Singapore stock market.
DLF Assets Pvt Ltd (DAPL) had earlier received an investment of $400 million and $200 million from global investing firm D E Shaw and a fund sponsored by investment banking firm Lehman Brothers respectively.
The sale of commercial assets to DLF Assets contributed Rs2,207 crore to DLF Ltd’s revenue and Rs1,564 crore to its profit before tax in 2006-07, making up around 55% of DLF Ltd’s revenue and 61% of its pre-tax profit.
“The main reason for the increase in sales revenue (of DLF Ltd) was the sale by us of certain commercial properties to DAPL,” DLF had said in its IPO prospectus.