Real estate major DLF will install a new air-filtration technology across its office buildings spread across 32 mn sq ft pan India at a cost of Rs 30 crore over the next six months to ensure a safe work environment for its corporate tenants as their employees return to work from January, the company’s senior official said.
The amount will be invested towards installing the MERV-14 range of air-filtration technology that helps purify the air in the office, thus making it safer for occupants. It was recommended by the American Society of Heating Refrigerating and Air-Conditioning Engineers (ASHRAE).
The company has already started the process of upgrading its workplaces with MERV-14 air-filtration technology and aims to complete the process by next year across its office portfolio.
"We may take another six months to install the new technology across our office buildings and the total investment will be around Rs 30 crore," Amit Grover, Executive Director, DLF Offices, told Moneycontrol.
This will be invested over the next six months across buildings in Delhi, Gurgaon, Kolkata, Chandigarh, Chennai, and Hyderabad. “We have already completed a pilot in one of our buildings in Gurgaon,” he said.
“All these factors will continuously increase the demand for DLF and Grade A developments that are taking care of employees wellbeing and gradually in the long run this will have a positive impact on the rentals. Primarily our focus right now is to take care of employee wellbeing and we are making these investments in indoor air quality,” he added.
The investment is for office buildings spread across 32 mn sq ft of operational space out of which the company earns an annual rental income of Rs 3000 crore. Another 3 mn sq ft is currently under construction of which 2 mn sq ft is in Chennai and 1 mn sq ft is in Gurgaon.
“The former would be ready by the third quarter of 2022. ” Grover added.
He also said that the rent collection from its leased offices across cities has been around 97 percent despite the pandemic and that only 10-15 percent of the workforce has returned to its office buildings as corporates have adopted a work from home policy.
“The numbers may gradually inch up from January onwards,” he said.
“Indoor air quality is one of the most important considerations to enable a safe return to work and we are one of India’s first developers to upgrade our technology for safer, cleaner air. This state-of-the-art filtration boosts cognitive functions and helps in facilitating a safer, healthier workplace for the physical and mental well-being of employees. We are confident that this will boost tenant and stakeholder confidence while returning to work during these challenging times”, he said.
DLF Cyber City Developers Ltd (DCCDL) is a joint venture between DLF and Singapore's sovereign wealth fund. DLF holds 66.67 percent stake while GIC has 33.33 percent stake in the DCCDL. GIC had picked up stake in the DCCDL by investing Rs 9,000 crore.
The firm is also the only Indian realty firm to be listed on the Dow Jones Sustainability Index (DJSI) 2020 in the Emerging Markets Category. DLF Office Rental business has also been recognized as a sustainability leader in GRESB global rankings and has received a Green Star rating.