When Will DLF be REIT Ready?
Real Estate Developer DLF will be ready in the next few months after completing most of the REIT prep work; Company executives told investors during an analysts’ call in the fourth quarter. According to the CEO of DLF Limited, most of the critical decisions in terms of mergers and all, in principle, are frozen; The perimeter of the assets is also in the same condition. The Cybercity Board meeting may occur in the next four weeks. Accordingly, the company should be fully ready in a few months.
DLF has hired three leading consulting firms, KPMG, Morgan Stanley, and Shardul Amarchand Mangaldas & Co, to help prepare its leased commercial assets for the REIT listing in February last year. According to Ashok Kumar Tyagi, this is a matter of many factors, including interest rate, time, and comfort of two shareholders, and improving the level of vacancies, which determines their term. However, the fact is that the firm is making good progress.
DLF Cyber City, Developers Ltd, a hired subsidiary of the company, was on the road to recovery with 88% occupancy; Fiscal and retail business revenue grew 67% year-on-year. Rental income increased by 10% per year. According to reports, the preparation is at an advanced stage. Quite a lot of discussions were held with bankers, tax advisors, etc. Accordingly, the processes should be ready within the next two months. Shareholders then have to decide when they want to do it.
DLF – What to Expect
This year, the company’s total revenue was $4,533 million, 3% more than the previous year’s 4.385 million. According to the director, it was a pretty strong year in sales, and the resilience showed by the commercial leasing business. The market is still strong, so the firm is also growing.
India’s first REIT was listed in April 2019 by Embassy Office Parks, sponsored by Embassy Group and Blackstone. The office business is showing remarkable resilience despite some challenging periods in terms of commercial leasing. It is worth noting that DLF is India’s most prominent office operator, with approximately 38 million square feet of finished offices. The company’s management believes that the demand for offices will increase in the coming months.
