DLF expects 20% growth in commercial office rent
India ‘s biggest real estate developer, DLF expects a 20 percent annual growth in office rental income. By 2014-15 fiscal year the rental value is expected to increase to Rs 2,500 crore.
DLF has already touched Rs 1,500 crore as office rental income in 2011-12, and hence it has currently Grade A office leasing portfolios of 27 million sq ft.
According to DLF National Director (Office Business) Amit Grover, the office leasing business of DLF is growing by 20 percent per year. Among all the leasing portfolio’s, they have 15 million sq ft in Gurgaon, NCR, Chennai, Hyderabad, Kolkata, Pune and Chandigarh. Over next three years they also expect a hike in office leasing portfolio to 33 million sq ft from 27 million sq ft.
The company has a debt of Rs 21 crore and is targeting to reduce Rs 18,000 crore by selling its two big non-core business projects – luxury chain, Amanresorts and wind energy.
The company is looking forward to cut the debt to below Rs 15000 crore and in order to cover the financial cost by the rental income. The Gurgaon office spaces have increased prominently by 15 percent even after the slow down in the commercial real estate business, noted Grover.
DLF is to add two million sq ft of office stock every year and is expecting that the demand for its office spaces would largely come from MNCs and big domestic companies like Accenture, IBM, Google, Cognizant, TCS, Barclays, Citi and GE.
DLF has come up with 128 acre integrated business district like DLF Cybercity in Gurgaon. A 16 lane toll free road with multi level car parking, fire station and captive power plant in Gurgaon is being developed, said Grover.
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