DLF-GIC joint venture reports 15% increase in rental income in FY20

NEW DELHI: DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and GIC, has reported 15 per cent rise in its rental income last fiscal at Rs 3,006 crore on strong demand for quality office and retail spaces.

The rental revenue stood at Rs 2,620 crore in the previous financial year, according to its investors' presentation.

DCCDL has a portfolio of 30.3 million sq ft of leased commercial spaces, largely grade-a office buildings.

DLF'S bulk of the rental assets are in this joint venture firm, while some of the commercial buildings are still part of the parent company.

DLF, the country's largest realty firm, has 66.66 per stake in the JV firm DCCDL, while GIC -- Singapore's sovereign wealth fund -- holds the remaining 33.34 per cent stake.

The joint venture was formed when DLF promoters sold their 40 per cent stake in the DCCDL for Rs 12,000 crore in 2017. This deal included sale of 33.34 per cent stake in the DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by the DCCDL.

As per the presentation, the DCCDL'S net profit dropped to Rs 1,317 crore last fiscal from Rs 1,400 crore in the 2018-19.

Total income dipped marginally to Rs 5,083 crore from Rs 5,088 crore during the period under the review.

DLF said that rental collections have maintained a healthy trend and are well on track.

"Work-from-home is expected to remain a positive supplement to the regular office-based model of working, not a substitute for the same," it said.