Singapore Property Frontiers

Indian developer DLF Ltd will revive and enlarge an initial public offer of its property trust in Singapore because it believes market conditions have improved, two people close to the development said on Monday.

Earlier this year, India’s most valuable property firm had shelved a planned US$1.5 billion IPO for its real estate investment trust (Reit), scheduled for the first three months of 2008, on account of volatile market conditions. At the time, a source had said it might consider a private placement instead.

‘The markets are slightly better than before, so we plan to update the IPO papers in Singapore by month-end or next month,’ one source said.

‘The size will be more than US$2 billion - possibly the same size as the India IPO,’ the first source said.

DLF had raised US$2.25 billion in its IPO last July, which at the time was India’s biggest-ever IPO.

‘We are looking forward to doing it some time next month,’ said the other source, who also has direct knowledge of the deal.

A spokesman for DLF declined comment.

The second source said Symphony Capital, a private equity firm, had already invested US$450 million in the DLF Assets, which is to be listed in Singapore as a Reit, in a private placement.

DLF’s founders had also put 12.8 billion rupees (US$305 million) rupees into DLF Assets, the source said.

‘This is a move to show that even the promoters are confident on the futures of the trust,’ the source said.

DLF, which had first announced plans for the Reit IPO last year, said in February it was still working on it, and expected it to be launched in the second quarter of the year.

‘We have already received regulatory approval in Singapore, we just need to update the papers with the most recent financial information,’ the first source said on Monday.

Poor market conditions had prompted rivals Unitech and Indiabulls Real Estates to also postpone their planned Singapore Reit IPOs in March. India’s main share index fell almost 23 per cent in the March quarter.

Indiabulls Properties Investment Trust filed its prospectus last Thursday, and plans to raise US$235 million in its IPO in Singapore, a source told Reuters.

India does not allow Reits to be floated, although regulators have issued draft guidelines. — REUTERS

Source : Business Times - 12 May 2008