DLF To Invest Rs 1,500 Crore On New Commercial Project In Gurugram
DLF Cyber City Developers Ltd. will invest around Rs 1,500 crore over the next two years for construction of more than 3 million square feet of office space in Gurugram, Haryana, to tap into growing demand for commercial properties from corporates and co-working startups.
The joint venture of DLF Ltd. and Singapore’s GIC Pte Ltd. has initiated development of 'Downtown', a new mixed-use project spread over 11 million square feet of leasing area. DLF has 67 percent stake in the DLF Cyber City, GIC holds the rest.
"We are developing 3.2 million square feet office space in the first phase of this new project, located on the national highway and adjacent to DLF Cyber City project," DLF's Managing Director (rental business) Sriram Khattar told Press Trust of India.
The company has started construction work on two identical buildings of 7.5 lakh square feet each. "We are constructing these two buildings on steel structure with no basement for faster execution. The target is to complete by end of the next year," Khattar said. The construction work on the remaining 1.7 million square feet will start soon and get completed by the end of 2021, he added.
"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," the DLF CEO said.
DLF Cyber City has already started leasing space in this project and is expecting a rental of around Rs 120-125 per square feet per month.
Asked about the project cost, Khattar said the construction cost is estimated to be around Rs 5,000 per square feet. DLF Cyber City has started planning for development of the remaining 8 million square feet in the 'Downtown' project.
Talking about other DLF projects, Khattar said DLF Cyber City has completely leased its commercial project Cyber Park in Gurugram spread over 2.5 million square feet. It expects to earn a rental of about Rs 375 crore annually. The 12-acre project 'Cyber Park' has been developed at an estimated cost of about Rs 1,500 crore.
DLF Cyber City currently has a rental portfolio of over 30 million square feet with an annual rental income of over Rs 3,000 crore. It is currently developing 6.6 million square feet of projects across the country.
DLF has developed around 153 real estate projects over 330 million square feet. It currently has 221 million square feet of development potential across residential and commercial segments.