DLF to invest ₹750 cr in new project
NEW DELHI: Realty firm DLF will invest around ₹750 crore for construction of a new commercial project in Gurugram as it seeks to encash rising demand of office and retail space from end users as well as institutional investors, according to sources.
The company has decided to build a new commercial project with 2.5 million sq. ft area in Gurugram. It will sell office and retail space in this commercial project, and not adopt lease model, people familiar with the matter said.
DLF has completed and sold a 2.5 million sq. ft commercial project ‘DLF Corporate Greens’ located at Southern Peripheral Road in Sector 74A, Gurugram.
Adjacent to the Corporate Greens Project, the company has more land parcels where it will build the new commercial property. The construction work would start in few months with an estimated cost of around ₹750 crore, people familiar with the matter said. The company spokesperson declined to comment on the matter.
DLF, the country’s largest realty firm in terms of market capitalization, mostly develops commercial project on lease model to earn rental income. However, some of its projects are on sale model as well.
It has more than 30 million sq. ft of leased commercial properties with a rental income of over ₹3,000 crore.
The bulk of its rent-yielding commercial assets are in the joint venture firm DLF Cyber City Developers Ltd (DCCDL). While DLF owns 66.66% stake in DCCDL, Singapore’s sovereign wealth fund GIC holds the remaining 33.34%.
To monetize commercial real estate, DLF promoters had in late 2017 sold their entire 40% stake in DCCDL for ₹11,900 crore.
This deal included sale of 33.34% stake in DCCDL to GIC for ₹8,900 crore and buyback of remaining shares worth ₹3,000 crore by DCCDL.
Post this big ticket deal, DLF is looking to develop more commercial projects directly as well as through joint venture firm with GIC as it is left with limited stock.