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| Edited By: Vivek Seal |Source: DNA |Updated: Mar 30, 2018, 03:09 AM IST
DLF Ltd, the largest real estate developer in the country, has racked up lease deals for about 10 million square feet or slightly more than half its leasable commercial assets, according to a company presentation.
Earlier, DLF had merged Caraf, the holding company for DLF Assets Ltd (DAL) due to which the combined entity has 19 million square feet of assets for lease.
Of this, DAL itself has a portfolio of 13 million square feet of which it has leased out 6.5 million. The company plans to lease out at least a million square feet each quarter.
Saurabh Chawla, executive director (finance), DLF, had said DLF wants over 80% of the DAL portfolio to be leased before mulling over a Singapore Reit listing.
The presentation by DLF said RentCo, a division that handles leasing for DLF and DAL, “has seen current leasing to be of about 10 million square feet”.
The management has given guidance to have rental income stream of about Rs1,600 crore by the end of the current financial year.
The company said it has seen increased traction in pre-leasing activity with some select markets witnessing a marginal increase in rentals such as Gurgaon and NOIDA, and even its retail divisions are experiencing signs of recovery.
The average leasing rate of its commercial space is at Rs41 per square foot with several enquiries coming from lucrative sectors such as banking and financial services, information technology, knowledge and business process outsourcing.
Meanwhile, DLF is also looking to launch its ambitious residential project in NTC Mills, Lower Parel, Mumbai, in the second quarter of this year. It has converted the site into a 3 million square feet residential project and a 0.6 million square feet retail mall. The company was earlier looking to have commercial space at the location.
The pricing for the NTC Mills project would be at over Rs 20,000 per square foot. Currently, DLF has been able to generate cash collections of Rs600-700 crore a month from its projects in the housing and commercial space.
