DE Shaw sells 36 pct stake in India's DLF unit-reports

Hedge fund DE Shaw has sold a 36 percent stake in a property trust floated by the founders of Indian developer DLF Ltd  for $500 million, Indian newspapers reported on Friday. DE Shaw sold the stake to the promoters of DLF Assets Ltd, but still has a 4 percent stake which it plans to sell when the property trust is listed in Singapore, the Economic Times said citing a fund manager with knowledge of the development. A spokesman for DLF declined to comment on the report, and officials at DE Shaw could not immediately be reached.

Local media had earlier reported the country's largest listed real estate firm had started talks with bankers for the property trust's listing in Singapore after attempts in 2008 failed due to the global equity markets tumble. [ID:nDEL88760] The media reports said DE Shaw made a profit of $100 million by selling its stake in DLF Assets after paying $400 million to invest in the property trust two years ago.

DLF Assets is privately owned by the promoters of DLF, the KP Singh family, the Economic Times said, adding it buys from DLF commercial assets that are ready for occupation.

Business Standard newspaper said, quoting sources, DE Shaw would sell the remaining 4 percent stake in DLF Assets to the promoters for $50-$60 million after the Singapore listing in the first quarter of 2010.

Source: Reuters