DLF-GIC JV Firm REIT in 15-18 Months

Realty major DLF's rental arm DCCDL has started the process of structuring its rent-yielding commercial assets in Real Estate Investment Trust (REIT) form but the timing to launch the public issue will be decided by the promoters. DLF Cyber City Developers Ltd (DCCDL) is a joint venture between DLF and Singapore's sovereign wealth fund. DLF holds 66.67 percent stake while GIC has 33.33 percent stake in the DCCDL, which owns around 33 million sq ft of commercial assets with rental income of over Rs 3,000 crore. GIC had picked up stake in the DCCDL by investing Rs 9,000 crore. According to DLF Director Ashok Tyagi the company would soon appoint consultants for creating a proper structure of its rental assets. It would take 15-18 months in becoming REIT ready, but the actual timing to launch public issue of REIT would be decided by the two shareholders. Besides completed leased assets, DCCDL is developing many assets currently and has huge future pipeline. The JV will have to decide proper framework as in the REIT, 80 percent of the assets should be completed leased asset portfolio. DLF's MD (Rental Business) Sriram Khattar said the rental growth this year will remain muted due to COVID pandemic. The company's group CFO Vivek Anand said the interest cost in the DCCDL has been reduced significantly and it will come down further.