VCCircle

We would always bring exclusive news to you as and when we get it. In fact, I have a few leads and would be posting it once I verify them.

I have this lead on DLF Group, Delhi-based real estate biggie, that it's raising a huge real estate fund. The fund size is likely to be $1 billion, according to some sources. Private equity giants like Blackstone, Carlyle and Temasek India Advisors are being courted by DLF for raising this fund. Some sources say that the fund would be investing only in DLF's various upcoming real estate projects.

DLF, owned by K P Singh (in the picture), is a good real estate company. It has profits in the range of Rs 400 crore a year. They pioneered quality construction in Delhi. Their building, DLF Universal, in Delh's Connaught Place is still the best building in that part of the town and commands a significant premium in rentals compared to the other buildings in the same area. They have built international class housing colonies in Gurgaon, a southern suburb of Delhi.

So if any private equity firm wants a share of the real estate pie, it should aspire for a partnership with DLF. If you ask for a suggestion for a good alternative to DLF, I would give Unitech's name. It's also a quality real estate company.

UPDATE: The Economic Times reports that DLF is looking at a $1 billion private placement. It more or less validates my story. What I think is that a fund is more likely since that would sort out the legal issues surrounding the deal.

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