DLF to invest Rs 20,000 cr in medium term to expand its commercial real estate business

New Delhi: Real estate major DLF plans to invest around Rs 20,000 crore in the medium term to expand its commercial real estate business.

In a corporate presentation uploaded on stock exchanges, DLF shared the growth strategy of its rental business. “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 developers in parent DLF Ltd and also in joint venture firms including DLF Cyber City Developers Ltd (DCCDL).

In its annuity business, DLF has a strong operational portfolio of around 44 million square feet of rental assets, with high occupancy levels of 93 per cent. The portfolio is set to reach 73 million square feet in the medium term. The DCCDL, a joint venture between DLF and GIC, holds the bulk of rental assets of the DLF group. DLF has a 67 per cent stake in the JV firm. “High quality owned land bank available for sustainable long-term growth,” it said.

The annuity business includes rental business of DLF, DCCDL and Atrium Place, besides hospitality business of DLF and services/asset management business of the Group.

Recently, sources said that DLF’s rental arm DCCDL will invest around Rs 6,000 crore to construct 75 lakh square feet of prime office and retail spaces in Gurugram.