MUMBAI - DLF Assets, owned by the founders of India's top real estate firm DLF (DLF.BO), is reviving plans for a Singapore listing of its real estate investment trust, encouraged by the global equities rally, three sources said.

The firm, which buys its properties from DLF and collects lease rentals, plans to raise between $500 million and $1 billion, the sources said.

That is much less than a targeted fund-raising of up to $2 billion that was planned in 2007, before the listing was called off as stock markets collapsed last year.

The company is working with Citigroup (C.N) on the deal, the sources said.

More banks are expected to join as arrangers for the offering, which one source said could be launched by March but two other sources said was likely to be initiated later in 2010. If the current mood prevails and things move smoothly, a listing in the first quarter next year is possible, one source said.

The last time it planned to list, DLF Assets had hired Goldman Sachs (GS.N) and Lehman Brothers to arrange the offering.

DLF's founders raised $783 million by selling shares earlier this year to inject capital into the property trust and also to buy private equity firm D.E. Shaw's stake.

The firm would use the funds from the Singapore listing to cut its debt, a part of which is owed to DLF, two sources said. (Reporting by Narayanan Somasundaram and Tony Munroe; Editing by John Mair)