Real Estate company DLF’s arm will invest around ₹1,500 crore in the next two years on construction of over 3 million sq. ft. office space in Gurgaon to take advantage of the increasing demand for commercial properties from corporates and co-working players. DLF Cyber City Developers Ltd. (DCCDL), a joint venture between DLF and Singapore’s sovereign wealth fund GIC, has started the development of its new mixed-use project named ‘Downtown’ encompassing 11 million sq. ft. of leasing area. DLF has 67% stake in the DCCDL.

Sriram Khattar, Managing Director of DLF’s rental business said that they were developing 3.2 million sq. ft. office space in the first phase of the new project, located on national highway and adjacent to DLF Cyber City project. Initially, the company has started construction work on two identical buildings of 7.5 lakh sq. ft. each. The two buildings will be constructed on a steel structure with no basement for faster execution. The target is to complete by end of the next year.

The construction work on the remaining 1.7 million sq. ft. will start soon and get completed by end of 2021, Mr. Khattar added. Mr. Khattar added that, “There is a huge demand for office space in Gurugram from corporates as well as co-working operators. Our commercial buildings in Gurugram are almost completely occupied. Therefore, we have started this new project to cater to the growing demand”.

DCCDL has already started leasing space in this project and is expecting a rental of around ₹120-125 per sq. ft. per month. The construction cost of the project is estimated to be around ₹5,000 per sq. ft. The DCCDL has started planning for the remaining 8 million sq. ft. development in the ‘Downtown’ project.

Talking about other projects, Mr. Khattar said the DCCDL has completely leased its commercial project Cyber Park in Gurugram comprising 2.5 million sq. ft. area. It expects to earn a rental of about ₹375 crore annually. The 12-acre project ‘Cyber Park’ has been developed at an estimated cost of about ₹1,500 crore.

The DCCDL currently has a rental portfolio of over 30 million sq. ft. with an annual rental income of over ₹3,000 crore. It is currently developing 6.6 million sq. ft. projects across the country. DLF has developed around 153 real estate projects and an area of about 330 million square feet. It currently has 221 million sq. ft. of development potential across residential and commercial segment.

 

Source: https://realty.economictimes.indiatimes.com/news/commercial/dlf-to-invest-rs-1500-crore-in-over-3-million-sq-ft-office-space-in-gurugram/72225968

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