Real estate giant DLF is set to invest around Rs 20,000 crore in the medium term to expand its commercial real estate business, which includes both office and retail spaces. The company shared its growth strategy for its rental business in a corporate presentation, stating that significant capital expenditure (capex) is being committed to fuel growth. The planned capex will span both parent company DLF Ltd and its joint venture firms, including DLF Cyber City Developers Ltd (DCCDL).
DLF's rental business currently boasts a portfolio of approximately 44 million square feet of operational assets, with high occupancy rates of 93%. This portfolio is set to expand to 73 million square feet in the near future. DCCDL, a joint venture between DLF and GIC, holds the majority of DLF’s rental assets, and DLF owns a 67% stake in this JV.
As part of its aggressive expansion, DLF’s rental arm, DCCDL, is investing Rs 6,000 crore to develop 75 lakh square feet of prime office and retail spaces in Gurugram. Construction is already underway for 5.5 million square feet of Grade A office space in the DLF Downtown project, and the DLF Mall of India is also being built, covering a total area of 20 lakh square feet.
With a strong land bank for future growth, DLF remains focused on sustainable long-term growth within its annuity business, which includes its rental and hospitality assets as well as its services/asset management businesses. The company has already developed over 185 real estate projects, covering more than 352 million square feet, and has 220 million square feet of development potential across both residential and commercial segments.