DLF to invest Rs 20,000 cr to complete ongoing housing projects; eyes Rs 43k cr surplus cash

DLF to invest Rs 20,000 cr to complete ongoing housing projects; eyes Rs 43k cr surplus cash

Real estate giant DLF Ltd plans to invest approximately Rs 20,000 crore in the coming years to finish the construction of its ongoing residential projects.

The company expects to generate a total surplus cash potential of approximately Rs 43,000 crore from these completed projects.

In a corporate presentation released on the stock exchanges' website on Friday, DLF revealed its growth strategy for its housing development and annuity businesses, the latter of which involves building commercial projects that generate rental income.

The presentation states that the "total pending cost to complete all launched projects" is approximately Rs 20,000 crore.

In recent years, DLF has launched several housing projects in Gurugram, including the ultra-luxury development 'The Dahlias', which has a revenue potential of approximately Rs 35,000 crore.

Additionally, DLF reported a cash balance of Rs 9,000 crore at the end of the December quarter, with customer receivables from sold housing units amounting to Rs 30,000 crore.

The estimated cash surplus from inventory that has been launched but not sold by the end of the December quarter this fiscal is approximately Rs 24,000 crore.

After accounting for the pending construction costs, the total surplus cash potential from launched projects amounts to Rs 43,000 crore.

In its rental business, DLF intends to invest around Rs 20,000 crore over the next five years to develop commercial properties, including office and retail spaces.

"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 developed by DLF Ltd directly, as well as through joint ventures, including DLF Cyber City Developers Ltd (DCCDL).

In its annuity business, DLF manages a strong operational portfolio of about 44 million square feet of rental assets, with a high occupancy rate of 93%. This portfolio is projected to expand to 73 million square feet in the medium term.

DCCDL, a joint venture between DLF and GIC, holds the majority of the DLF group's rental assets, with DLF owning a 67% stake in the venture.

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

The annuity business includes the rental operations of DLF, DCCDL, and Atrium Place (a joint venture with US-based Hines), along with DLF's hospitality business and the group's services/asset management operations.

According to recent sources, DLF's rental arm, DCCDL, is set to invest around Rs 6,000 crore to develop 75 lakh square feet of high-quality office and retail space in Gurugram.

DLF's rental arm, DCCDL, has started the construction of 5.5 million (55 lakh) square feet of Grade A+ office space in the new phase of its ultra-premium commercial project, 'DLF Downtown, Gurugram'.

Additionally, DCCDL has begun work on the DLF Mall of India in Gurugram, covering a total area of 20 lakh square feet.

DLF Group has developed more than 185 real estate projects and an area of more than 352 million square feet since inception. Additionally, the group has a development potential of 220 million square feet in both residential and commercial areas.