DLF, a major real estate developer, intends to invest around Rs 20,000 crore in commercial properties, including office and retail spaces, over the next few years.
DLF shared its rental business's growth strategy in a corporate presentation that was uploaded to stock exchanges.
"Significant growth capex is being committed for growth," the company stated, adding that an additional capex of around Rs 20,000 crore is planned in the medium term.
These commercial assets will be developed by both parent company DLF Ltd and joint venture firms such as DLF Cyber City Developers Ltd (DCCDL).
In its annuity business, DLF has a strong operational portfolio of approximately 44 million square feet of rental assets, with a 93% occupancy rate.
The portfolio is expected to reach 73 million square feet in the medium term.
The DCCDL, a joint venture between DLF and GIC, holds the majority of the DLF group's rental assets. DLF holds a 67% stake in the joint venture.
"High quality owned land bank available for sustainable long-term growth," it stated.
The annuity business includes the rental businesses of DLF, DCCDL, and Atrium Place, as well as DLF's hospitality business and the Group's services/asset management businesses.
According to sources, DLF's rental arm DCCDL will invest approximately Rs 6,000 crore to construct 75 lakh square feet of prime office and retail space in Gurugram.
DLF's rental arm, DCCDL, has begun construction on 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'. The DCCDL has also begun construction on the DLF Mall of India in Gurugram, which will cover a total area of 20 lakh square feet.
DLF's primary business is to develop and sell residential properties (the Development Business) as well as to develop and lease commercial properties (the Annuity Business).
Since its inception, the company has developed more than 185 real estate projects totaling over 352 million square feet. The Group has 220 million square feet of development potential in the residential and commercial segments.
