DLF to bring rental properties under one entity

Realty major DLF has decided to bring all of its rental properties under a single umbrella, as part of a business restructuring, to optimise the value of its various realty verticals. DLF said that its realty business, henceforth, will be divided into two --annuity (rentals) and development company.

Under the restructuring exercise, DLF Cyber City Developers Ltd (DCCDL), a subsidiary of DLF, would emerge as a group's flagship company for holding rental assets -- offices, malls, facilities management and utilities. On the other hand, the real estate development vertical will be divided into three divisions focusing on the Gurgaon market, super metros and rest of India.

DLF's board has approved merger of K P Singh-promoted Caraf Builders & Constructions with its subsidiary DLF Cyber City. Both DLF Cyber City and Caraf are engaged in leasing commercial spaces. The restructuring would provide sharper focus on execution with emphasis on robust systems, processes and risk management and also avoid the perceived conflict of interest between promoter firms and DLF.