DLF Assets may float a REIT

Market rumors indicate that DLF Assets may soon float a Real Estate Investment Trust in Singapore packaging its IT and SEZ space to raise upto USD 2 billion. Indian market news leader CNBC-TV18 indicates that the REIT may be launched in June, and that DLF Assets had delayed earlier plans to list the same due to Volatile Asian Markets.

A real estate investment trust also known as a REIT across the world is a special vehicle through which you can invest in real estate growth without having to deal with the burden of developing, managing and realization of the profits. REITS are very popular in the western world and the same instruments are now available to Indian Investors.

SEBI has recently released the guidelines for REITS that are expected to enter the market in 2008. SEBI's guidelines also promote diversification through various restrictions including a cap of 15% in a single project, 25% into a single developer and an overall cap of 20% to incomplete or inprogress projects. These restrictions we expect will drive funds to start generating more dividends through acquisition and management of atleast a few existing properties instead of waiting for new projects to complete.