DLF to invest Rs 20,000 crore in commercial real estate expansion

Real estate major DLF plans to invest around Rs 20,000 crore in the medium term to develop commercial properties, including office and retail spaces.

In a corporate presentation uploaded on stock exchanges, DLF shared the growth strategy of its rental business.

"Significant growth capex being committed for growth," the company said, adding that an incremental capex of around Rs 20,000 crore is planned in the medium term.

These commercial assets will be developers in parent DLF Ltd and also in joint venture firms including DLF Cyber City Developers Ltd (DCCDL).

In its annuity business, DLF has a strong operational portfolio of around 44 million square feet of rental assets, with high occupancy levels of 93 per cent. The portfolio is set to reach 73 million square feet in the medium term.

The DCCDL, a joint venture between DLF and GIC, holds the bulk of rental assets of the DLF group. DLF has a 67 per cent stake in the JV firm.

"High quality owned land bank available for sustainable long-term growth," it said.

The annuity business includes rental business of DLF, DCCDL and Atrium Place, besides hospitality business of DLF and services/asset management business of the Group.

Recently, sources said that DLF's rental arm DCCDL will invest around Rs 6,000 crore to construct 75 lakh square feet of prime office and retail spaces in Gurugram.

DLF's rental arm DCCDL has commenced construction of 5.5 million (55 lakh) square feet of Grade A plus office spaces in the new phase of its ultra-premium commercial project 'DLF Downtown, Gurugram'. The DCCDL has also commenced construction of DLF Mall of India, Gurugram, with a total area of 20 lakh square feet.

DLF is primarily engaged in the business of the development and sale of residential properties (the Development Business) and the development and leasing of commercial properties (the Annuity Business).

The company has developed more than 185 real estate projects and an area of more than 352 million square feet since inception. The Group has 220 million square feet of development potential across residential and commercial segments.