Real estate developer DLF Ltd has appointed investment banks JP Morgan and Morgan Stanley to advise the company on listing of Real Estate Investment Trusts (REITs), it said in its investor presentation post the third quarter financial results.

 

“With the REITS around the corner, the company is committed to form two REIT platforms to monetise almost 30 msf of commercial assets thereby, increasing cash flows and reducing debt,” the company said.

 

 It will create two REIT platforms next year – one for Office and the other for Retail, and will target first filing within fiscal year 2016.

 

The Board has appointed a Committee of Independent Directors which have appointed 2 investment banks —JP Morgan and Morgan Stanley — to advise the company for REITs which will create sustainable, long term income for DLF and its shareholders, it said, adding that the committee shall await the Budget 2015 tax proposals and SAT decision before taking a call on the strategy forward.

 

On the current outlook for sales, the company said it shall take at least 12-18 months for the sales momentum to revert to targeted levels. The company added that it is in dialogue with few PE players for part cash out in some marquee projects before launching in FY16.

 

As far as debt is concerned, it stood at ₹20,336 crore in the third quarter of financial year 2014-15. The company has reported a 9.2 per cent drop in net profit at ₹131.79 crore for the third quarter of financial year 2014-15, compared with ₹145.29 crore in the same period a year ago. The total income from operations fell 4.9 per cent at ₹1,956.72 crore for the third quarter of financial year 2014-15, compared with ₹2,058.42 crore in the same period a year ago.

 

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