DLF to launch IPO for office trust in singapore

New Delhi: Billionaire businessman K P Singh-promoted DLF Assets is likely to launch an initial public offer of its office trust in Singapore by June to raise over $2 billion (over Rs 8,000 crore).

DLF Assets, which has been set up to acquire completed commercial projects of India's most-valued realty company DLF, is planning to file the updated prospectus soon for its proposed IPO to the Singapore authority, the market sources said. The earlier prospectus had financial information only till September 2007.

DLF Assets had planned to float the IPO in January, but decided to delay its public offer in Singapore because of volatility in the stock markets across the world.

It had received the regulatory approvals from Singapore authorities to launch the IPO of DLF Offices Trust, a Real Estate Investment Trust (REIT) of DLF Assets. DLF Offices Trust would get fresh approval very shortly, market sources added.

Last year, DLF Assets had raised $400 million and $200 million from global investing company D E Shaw and a fund sponsored by investment banking firm Lehman Brothers, respectively.

DLF Assets has also raised $450 million from Symphony Capital in pre-IPO placements.

The promoters have pumped in about Rs 1,200 crore in the company, which sources said would help increase investors confidence, besides providing more returns to them as 90 per cent of the profit is distributed to the investors as dividend in REIT.

DLF Vice-Chairman Rajeev Singh had said in January that the DLF Offices Trust would get listed by mid-year. 'It's not a small number. It will be of a good size,' he had replied when he was asked about the total fund company plans to raise through Singapore listing.

DLF has got the approval from its board of directors to invest up to $750 million in the Singapore IPO. 'DLF Assets would be offering its stake through DLF Offices Trust to REIT investors.

DLF would buy a minority stake in the trust through this investment,' DLF Executive Vice President (Finance) Saurabh Chawala had said earlier.