Accelerating the process of monetizing its huge commercial assets across the country, DLF Ltd, which is also the country's largest real estate company, plans to launch the Real Estate Investment Trusts (REITs) and is currently looking for strategic and financial partnership with global players. As a matter of fact, the mega builder is targeting to create one or more sizeable REIT platform, one for office and the other for retail to recycle capital for further growth and spin off the Rent Co attributable debt, said an industry insider, adding that the player has a strong portfolio of office and retail properties from which it currently earns about Rs 2,100cr as rental income.
According to sources, its main objective of launching REIT would not only be to maximize the present value of the assets but also capture the immense potential of growth that a growing Indian economy has to offer in the near future. In this connection, it may be recalled that the Securities and Exchange Board of India (Sebi) had in the recent past notified norms for listing of business trust structures - REITs and InvITs (infrastructure investment trusts) - that would help attract more funds in a transparent manner into realty and infrastructure sectors and that these trusts would get tax incentives as the growth cycle in the office and retail segments of rental business improves. DLF is also seeking to create long-term free cash flows in the form of dividend flows as holders of REIT units.