DLF looks to establish three new property vehicles

On the eve of its IPO, Indian developer The DLF Group is reportedly looking to tap foreign investors for three funds to focus on infrastructure, luxury hotels and townships.

The DLF Group, an Indian real estate development company set to IPO in India next week, is reportedly launching three new private equity vehicles to invest in real estate and infrastructure in India.

The three funds will tap foreign investors to fund company projects, according to a report in the Business Standard newspaper. The firm is reportedly looking to raise $2 billion (€1.5 billion) for infrastructure development, $1 billion to invest in the luxury hotel sector and $10 billion to invest in two 20,000-acre township projects via a joint venture with UAE-based developer Nakheel

DLF is looking to enter the luxury lodging market in New Delhi, Gurgaon, Mumbai and Bangalore. Last year, the firm inked a separate arrangement with Hilton to develop 50 to 75 lodging properties across the subcontinent under the Hilton banner. Meanwhile, DFL is working with Nakheel to develop the township projects in Gurgaon and the South Maharashtra/Goa region.

According to the press report, the firm is also looking to list the vehicles overseas, but is not considering London’s Alternative Investment Market, a popular stop for numerous India-focused private equity real estate funds.

DLF has 220 million square feet of existing properties and has more than 574 million square feet worth of projects on the drawing board. Last week, the firm also announced plans to team up with Fortis Healthcare to develop hospitals in 31 Indian cities in the next 3 to 5 years.