The Hindu Business Line : Emaar MGF to float REIT in 2 years

New Delhi, Jan. 23 Exuding confidence that the company’s long-term growth prospects will prompt a strong investor response for its Rs 7,000-crore upcoming public issue, real estate company Emaar MGF today said it is looking at floating Real Estate Investment Trust (REIT) over the next 18-24 months.

“Based on the response we have received in our roadshows, and the advice from bankers, we believe this is a reasonably good time for the IPO. Compared to September 2007 when we had filed our offer documents, markets are at a higher level. We are focussed on the long-term growth and development of business, and I am sure that the investors will view us in the same light,” Mr Shravan Gupta, Executive Vice-Chairman and Managing Director, Emaar MGF Land Ltd, said at a conference here.

The company whose IPO is slated to open on February 1, kicks-off the roadshow in Asia tomorrow, and would follow it up with roadshows in Europe and the US next week onwards.

“I am hopeful that we will be able to achieve the upper end of the price band (Rs 690 per equity share). India’s growth story is unique, and given the strong GDP growth momentum everyone is going to focus on emerging markets like India and China,” Mr Gupta said. Meanwhile, the company is also looking at listing a REIT in near future to extract the best value for its shareholders. Senior company officials said it may look at listing such a venture in Singapore, London or even India, where market regulator SEBI last month came out with draft guidelines for REITs. The REIT portfolio would include IT SEZs and retail assets, officials said but did not comment on the size of the REIT listing.

India’s largest real estate firms DLF Ltd, and Unitech have been talking about listing REITs in Singapore. REIT uses pooled capital of many investors to purchase and manage income property. REITs issue shares that trade on stock exchanges like shares of common stock. Equity REITs raise money and invest in various real estate ventures such as malls, apartments or industrial buildings.

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