With commercial real estate market gaining traction, DLF's portfolio has reached a 33 million sq ft milestone in the office and retail space.
"The company has started construction of an 11 million sq ft multi-use development in DLF Downtown, Gurugram and will begin work on the 7 million sq ft IT Park at DLF Downtown, Taramani in Chennai," Sriram Khattar, Managing Director, Rental Business, DLF told Moneycontrol.
"Our rental portfolio is currently about 33 million sq ft which includes retail of 4 million sq ft and 29 million sq ft of office space. This will increase by 18 million sq ft over the next five to six years on completion of DLF Downtown in Gurugram and in Taramani, Chennai," Khattar added.
The company is also carrying out a final feasibility study on building IT Parks in Pune and Noida. "Market research is on and we would decide on this in the coming few months. These would be commercial IT Parks each spread across 3 million sq ft to 3.5 million sq ft," he said.
The entity would also continue to explore opportunities in Bengaluru and Mumbai. "We have excellent land banks. For us to invest outside our portfolio, we would have to come across a very compelling investment opportunity. We would not want to rush into such opportunities," he stated.
New projects in Gurugram
Excavation work at DLF Downtown, Gurugram, is more or less completed and construction would begin after the construction ban is lifted.
"Phase 1 is an 11 million sq ft development with office space spread across 3.2 million sq ft and a mall comprising 2.5 million sq ft. Phase 2 comprises offices, serviced apartments and hotels," he said, adding the hotel and service apartment components would not be more than 0.5 million sq ft.
Speaking on the company’s joint venture with Hines, where it has invested about Rs 1,900 crore, Khattar said, "We took possession of the land from HSIIDC after the land conveyance in the name of JV. Hines is going to the development manager for the project."
"An international design firm has been selected. They are working on the concept design. Once it is ready, we would go ahead with the detailed planning. We are also in the process of getting the approvals. We hope to start construction by the middle of next year," he added.
New project in Chennai
The company has a 26-acre plot Chennai's in Taramani area.
"We are in advanced stages of planning and should commence construction by April 2020. We are calling it DLF Downtown, Chennai. DLF Cyber City Developers (DCCDL) has invested Rs 1,000 crore in Taramani so far for roughly 7 million sq ft of leasable area. The construction cost should be about Rs 3,000 crore. Total investment should be around Rs 4,200-4,300 crore," he said.
The company has another commercial property of about a million sq ft in the Guindy area. "We are still contemplating the development we would want on the Guindy land - commercial, retail or residential," Khattar said.
"All these projects are expected to be constructed in phases and we believe that the entire portfolio should be ready by the next five to six years," he added.
Plans for Hyderabad and Goa
The IT Park in Hyderabad, spread across 3 million sq ft, is completed and rented out. There is scope to develop another about 3.4 million sq ft.
"Our plan is on and we may develop close to 3.4 million sq ft. There are no definite timelines as to when work will start but we hope to make a decision in the next three to four months," he shared.
The company’s retail portfolio is expected to touch about 5 million sq ft by 2022. In addition, the company has plans to develop two new retail projects – one in Goa and the other in Gurgaon
"We will touch about 5 million sq ft by 2022. Our Goa initiative is still in the planning stage. We would take a decision on it in the next few months," he said.
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