Real estate major DLF Limited will invest Rs 5,000 crore in an IT park project—DLF Downtown—in Chennai’s Taramani locality, the company has said, a move aimed at expanding its portfolio of rent-yielding properties.
Tamil Nadu Chief Minister Edappadi K Palaniswami laid the stone for the 6.8 million sq ft commercial project on January 23.
“The company will commence construction of the 2.5 million sq ft built-up area in the first phase and is expected to finish the entire project on a fast-track basis. The company will develop the subsequent phases over time,” DLF CEO Mohit Gujral said
The Gurugram-based developer has a 27-acre plot in Taramani, which has emerged as a major commercial hub in recent years.
The project, which will largely cater to office spaces, will be developed by DLF's subsidiary, DLF Cyber City Developers Ltd (DCCDL) in a joint venture with GIC.
DLF has been in Chennai for 15 years. DLF Cybercity in Manapakkam is the largest IT SEZ in the state. Once Downtown Chennai is completed, DLF will have 14 million sq ft of commercial space in the southern city.
The project is expected to be completed in six years and will help generate 70,000 direct and 6,000 ancillary jobs once operational.
“Chennai continues to strengthen its position as an IT/ITeS hub with increasing investment commitment from global companies, making it our second-largest market after Gurugram," DLF MD (Rental Business) Sriram Khattar said.
The project would augment the company’s existing 32 million sq ft rental portfolio and “we plan to take the national portfolio to over 50 million sq ft once new projects are completed”, said Sriram Khattar, Managing Director, Rental Business, said.
DLF earns an annual rental income of over Rs 3,000 crore from commercial properties in Gurugram, Chennai, Hyderabad, Kolkata and Chandigarh.
Last year, it resolved a 10-year-old issue with the state-owned Tamil Nadu Industrial Development Corporation (Tidco) for developing the IT park.
The firm bagged the project through a global tender floated by Tidco in 2006-07 and paid the government around Rs 750 crore for the 26.25-acre land parcel located next to the American International School on the Velachery-Taramani Road.
The company opted for an IT park rather than an SEZ development as rentals were better and it also allowed more flexibility in bringing in amenities to the complex, Khattar said.