DLF Assets mulls listing to quench 1bn-a-yr appetite

DLF Assets Pvt Ltd, the real estate asset management company promoted by the DLF Group, is planning to list in India or abroad in the next few months.

DLF Assets Pvt Ltd, the real estate asset management company promoted by the DLF Group, is planning to list in India or abroad in the next few months. 8220;We will explore the possibility of listing 8212; in India or abroad 8212; for our asset holding vehicle over the next few months,8221; DLF Ltd vice-chairman Rajiv Singh told The Indian Express. 8220;We are looking at how DLF Asset can finance itself more efficiently.8221;

As the company grows, 8220;its appetite will grow, it will need to raise more money, and listing is one of the options we are exploring. It will be a fairly large and powerful entity, which will need to raise over 1 billion a year,8221; Singh said.

DLF Asset has raised private equity to the tune of 600 million. It has received 200 million from New Opportunities I PCC 8220;Investor8221;, a fund sponsored by Lehman Brothers, and 400 million from another global investment firm DE Shaw.

The returns to the private equity investors are performance based and both have received convertible shares. DLF Assets, which operates somewhat like a real estate investment trust, will invest in both DLF properties and in assets of other developers.

8220;We are looking at ways to strengthen DLF Assets, which is a major customer of DLF Ltd. If DLF Ltd8217;s assets sell at a higher price, the profits flow to DLF Ltd and its shareholders,8221; said Singh.

He emphatically clarified, however, that the listed entity, DLF Ltd, is not working at any more listings 8212; foreign or domestic. 8220;The present listing has given us enough capital and visibility. If we do any more listing, it will only be if an opportunity comes along that is of such an unbelievable size that it forces us to access the market. But we are not contemplating any other listing right now,8221; he explained.

He added that after the domestic listing, DLF equity is already available to foreign investors. 8220;So there8217;s no need to list on any other exchange to provide additional comfort or visibility to any investor,8221; he concluded.