DLF Group plans Rs 10,000 cr boost in office, mall projects for 2 years

Realty major DLF will invest Rs 10,000 crore in the current and next fiscal year to build premium office spaces and shopping malls to enhance its rental income, a senior company official said.

DLF Group has 45 million square feet of commercial assets, which include 41 million square feet of office and 4 million square feet of retail spaces, with an annual rental income of more than Rs 5,000 crore.

To leverage this advantage, DLF Group, which has a huge licensed land bank, is expanding its portfolio of rent-yielding commercial assets in a big way and constructing office and retail complexes in Gurugram, Chennai, Delhi and Noida amid strong demand from corporates and retailers.

The development of premium shopping malls and office spaces would "significantly boost rental income in the coming years", he added.

DLF Group hold the bulk of its commercial assets under its joint venture company DLF Cyber City Developers Ltd (DCCDL).

In this JV firm, DLF has a 66.67 per cent stake while Singapore sovereign wealth firm GIC has a 33.33 per cent shareholding.

DLF Group also has a JV with US-based Hines to develop a 3 million square feet office complex in Gurugram. It has a 67 per cent stake in this JV.

Out of the total 45 million square feet of the Group's operational portfolio, around 43 million square feet are under DCCDL.

To expand its commercial portfolio, DLF Group has a 28 million square feet area under the planning and development stage.

Out of this, more than 17 million square feet are under construction and over 6 million square feet are expected to be completed in the current fiscal itself.

DLF is building two large shopping malls in Gurugram and Noida.

Office complexes are being developed in Gurugram and Chennai, while the data centre is in Noida.

Recently, DLF reported that DCCDL has clocked an 11 per cent annual growth in office rental income to Rs 3,874 crore during the last financial year.