DLF rental arm’s REIT issue size may be far bigger than previous issues

Initial public issue size of DLF rental arm’s real estate investment trust or REIT could be far higher than the past issues due to geographies and type of assets the REIT will hold, said capital market experts.

“This may be the largest public issue of any REIT due to geographic concentration and assets,” said a real estate analyst who has worked on past REIT issues.

DLF rental arm DLF Cyber City Developers has properties in National Capital Region, Kolkata , Chennai and so on. DCCDL is a JV between DLF and Singapore’s GIC.

Shobhit Agarwal , managing director of Anarock Capital said:” It has more office than IT therefore better grade assets and needless to say bigger market, GIC endorsed and far deeper in terms of tenant relationship and markets like NCR, Chennai, Kolkata.”

Embassy Office Parks , a JV between Embassy group and Blackstone raised Rs 4,750 crore last year while Mindspace Business Parks, another Blackstone JV, raised Rs 4500 crore this year through a REIT listing.

Brookfield Asset Managment has filed DRHP for its Rs 4400 crore iPo for its REIT

While DLF’s rental arm DLF Cyber City Developers (DCCDL) has 33 million sq ft of assets, Embassy Office Parks has 33 mn sq ft of assets and Mindspace has 29 million sq ft of assets.

DLF arm’s REIT could come out in 12-15 months, DLF director Ashok Tyagi said in a conference call last week. He said the company would appoint consultants to create proper structure of rental assets.

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