Real estate giant DLF plans to invest approximately Rs 20,000 crore in the medium term to develop commercial real estate properties, including office and retail. In a corporate presentation filed with the stock exchanges, DLF outlined the growth strategy for its commercial real estate rental business.
“Significant growth capex being committed for growth,” the company said, adding an incremental capex of around Rs 20,000 crore.
DLF Ltd. and joint ventures, including DLF Cyber City Developers Ltd (DCCDL), will develop these commercial real estate assets.
In its annuity business, DLF boasts a strong operational portfolio of approximately 44 million square feet of rental assets, maintaining a high occupancy rate of 93%. The portfolio will grow to 73 million square feet in the medium term.
DCCDL, a joint venture between DLF and GIC, holds most of the DLF Group’s rental assets. DLF holds a 67% stake in the JV.
“High quality owned land bank available for sustainable long-term growth,” it said.
The annuity business encompasses DLF’s rental operations, DCCDL, and Atrium Place, as well as the hospitality and services/asset management sectors of the Group.
According to sources, DLF’s rental arm, DCCDL, is set to invest approximately Rs 6,000 crore to develop 75 lakh square feet of prime office and retail spaces in Gurugram.
DCCDL has already begun construction on 5.5 million square feet of Grade A office space in the latest phase of its ultra-premium commercial project, ‘DLF Downtown, Gurugram.’ Additionally, DCCDL has initiated the construction of the DLF Mall of India in Gurugram, covering a total area of 20 lakh square feet.
DLF primarily focuses on the development and sale of residential properties (Development Business) and the development and leasing of commercial properties (Annuity Business).
Since its inception, the company has developed over 185 real estate projects, spanning more than 352 million square feet. The Group also holds 220 million square feet of development potential across residential and commercial segments.
