DLF to Invest Rs 20,000 Cr in Housing Projects

New Delhi, Mar 22 (PTI) Real estate major DLF Ltd will invest around Rs 20,000 crore over the next few years to complete the construction of its already launched residential projects.

DLF will generate around Rs 43,000 crore of total surplus cash potential from the launched projects.

In a corporate presentation uploaded on stock exchanges' website on Friday, DLF shared the growth strategy of its development (housing) business and annuity business, which is building rent-yielding commercial projects.

As per the presentation, the "total pending cost to complete all launched projects" is around Rs 20,000 crore.

In the last few years, DLF has launched many housing projects in Gurugram, including the ultra-luxury project 'The Dahlias', which has a revenue potential of around Rs 35,000 crore.

DLF also informed that the company had Rs 9,000 crore cash balance at the end of the December quarter and the customers receivables from housing units sold stood at Rs 30,000 crore.

The estimated cash surplus from inventory launched but not sold till the December quarter of this fiscal is around Rs 24,000 crore.

After factoring in the pending construction cost, the total surplus cash potential from launched projects is Rs 43,000 crore.

In the rental business, DLF plans to invest around Rs 20,000 crore in the medium term (five years) to develop commercial properties, including office and retail spaces.

"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 developed directly by its parent firm DLF Ltd, and also by 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.

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 (JV with US-based Hines), 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.

DLF's rental arm DCCDL has commenced construction of 5.5 million (55 lakh) square feet of Grade A plus office spaces in the new phase of its ultra-premium commercial project 'DLF Downtown, Gurugram'.

DCCDL has also commenced construction of DLF Mall of India, Gurugram, with a total area of 20 lakh square feet.

DLF Group has developed more than 185 real estate projects and an area of more than 352 million square feet since inception. The group has 220 million square feet of development potential across residential and commercial segments.