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DLF appoints Morgan Stanley, KPMG as advisors to Reit

DLF in a regulatory filing on Friday said it has posted a 9% rise in quarterly net profit (MINT_PRINT)Premium
DLF in a regulatory filing on Friday said it has posted a 9% rise in quarterly net profit (MINT_PRINT)

  • Deliberations are on regarding the proposed Reit's corporate and capital structure as well as asset perimeters
  • DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore's sovereign wealth fund GIC Pte Ltd, owns and operates a 35 million sq ft ready rental portfolio

BENGALURU : The rental arm of DLF Ltd, India’s largest real estate firm, has appointed consultants as it prepares for a real estate investment trust, that could provide a significant leg-up to the country’s emerging Reit market.

It has appointed Morgan Stanley as banker, Shardul Amarchand Mangaldas & Co as legal advisor and KPMG as financial and tax advisor, the firm said in an analyst presentation.

Deliberations are on regarding the proposed Reit's corporate and capital structure as well as asset perimeters, the firm said.

DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore's sovereign wealth fund GIC Pte Ltd, owns and operates a 35 million sq ft ready rental portfolio, of which around 3 million sq ft is retail space and the rest is office.

“The first set of bankers and tax advisors has been hired as we prepare for a Reit-ready portfolio in the next 12 months. However, the timing of the listing will depend on the two shareholders," Sriram Khattar, managing director of DLF Rental Business said in an analyst call on Saturday evening.

Canada’s Brookfield Asset Management-backed Brookfield India Real Estate Trust plans to raise 3,800 crore through a public issue of its Reit in the coming week. The issue is priced between 274 and 275 and opens for subscription on 3 February and closes on 5 February.

Property consultants believe given the positive investor sentiment in India’s commercial office sector, DLF’s REIT could be a game-changer due to its sheer size and quality of assets.

Embassy REIT’s (33.3 million sq ft) listing in 2019 and the Mindspace Business Parks REIT (29.5 million sq ft) listing amid the pandemic, both backed by Blackstone Group Lp, as majority and minority shareholder respectively, have given investors huge confidence in the office sector.

DLF in a regulatory filing on Friday said it has posted a 9% rise in quarterly net profit helped by a continuing recovery in demand in the residential segment.

Profit in the three months ended 31 December rose to 449 crore from 413.10 crore a year earlier. Revenue grew 9% to 1,668.22 crore from 1,533.34 crore.

The firm also said that Rajeev Talwar, its chief executive since 2015, has decided to retire after a long association with the company.

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