India's most-valued real estate developer, DLF has received Occupancy Certificates (OC) for two of its commercial projects - Downtown 4 in Gurugram and Downtown 3 in Chennai - setting the stage for commencement of operations in next few months, potentially helping mop up Rs 6,700 crore in total annual rental earnings by the end of this fiscal.
DLF’s vice chairman and managing director (rental business), Sriram Khattar said both towers are pre-leased, with fit-outs nearing completion.
“The progress on our rental side is pretty good. We, in this quarter, have received the occupancy certificate for Downtown 4 in Gurugram and about 10 days back, we have received the occupancy certificate for Downtown 3 in Taramani in Chennai. The rentals (from these assets) should start in another 3 to 4 months' time. We expect exit rentals (annual rental earnings) by FY26 should be about Rs 6,700 crore,” Khattar had said in an analysts call earlier this month.
During FY25, the consolidated revenue of DLF Cyber City Developers (DCCDL) stood at Rs 6,448 crore.
Also Read: DLF gives sales guidance of Rs 20,000-Rs 22,000 crore for FY26; to launch Dahlias phase 2 in Q3FY26
DLF’s rental portfolio has operating assets of about 43-44 million square feet (msf) - which includes office parks, IT/ITeS SEZs, retail spaces and hospitality ventures. The vacancy levels across DLF’s rental portfolio stand at 6 percent, which is lower than other leading developers.
Khattar said DLF has a strong project pipeline for the next 12-18 months, further helping the company’s rental portfolio.
“The capex (capital expenditure) spends in the RentCo (rental division of the company) - which is the combination of DCCDL, DLF and Atrium Place - in FY26 and FY27 will be in the ballpark of Rs 5,000 crore,” he said.
Downtown Gurugram has 5.5 msf of offices space and 2 msf of retail, while Downtown Chennai in Taramani envisages the construction of 3.5 msf office space in two towers.
The company in its presentation said the occupancy certificate for phase-1 of its Atrium Place building is expected by July this year. The phase-1 of Atrium Place, a joint development between DLF and Hines, will have 2.1 msf development potential and is 87 percent pre-leased.
Similarly, for Summit Plaza in DLF Phase-5, the company expects the Occupancy Certificate (OC) to come in about 2-2.5 months' time and for Promenade mall Goa, DLF expects the OC in another 4-5 months.
The construction of Noida Data Center 2 is nearing completion, with construction underway for Data Center 3 in Noida, which is already leased.
DLF has a total of 12 msf commercial space under construction, as office plus retail,out of which 2.3 msf is leased and 9.7 is unleased. DLF said it has a development potential of additional 17 msf commercial space.
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