InvestorQ : How do you see the Chennai foray of DLF impacting its stock price?
Khushi Patel made post

How do you see the Chennai foray of DLF impacting its stock price?

Anjana Aiyar answered.
2 years ago

DLF Ltd proposes to invest Rs.5000 crore to develop a commercial project and some retail space on 27 acres in Chennai’s Taramani area. This is not the first but the fourth project of DLF in Chennai and will be developed in a JV with Tamil Nadu Industrial Development Corporation (Tidco). Now DLF will have around 14 million sq ft of development in the southern city of Chennai making it the second d largest market for DLF after Gurugram. The current project encompasses 6.8 million sq ft and will be built in three phases with 2.5 million sq ft in Phase 1.

In the last few years, Chennai has strengthened its position as an IT/ITES hub with increasing investment commitments from global companies. This will augment DLF’s 32 million sq ft rental portfolio and take the national portfolio to over 50 million sq ft. The residential business of DLF will continue to focus on Delhi and suburbs, but will expand its rental office portfolio across Chennai, Hyderabad and Pune. It already has a healthy 94% occupancy across its commercial assets.

DLF has been present in Chennai for 15 years and developed the iconic DLF Cybercity which is a large IT special economic zone (SEZ) with current annual rental revenue of Rs.500 crore. This will focus on the profitable commercial realty business and allow them to expand in the highly lucrative and fast growing Southern market. This is likely to be price accretive for DLF, which is already seeing a sharp price appreciation in the last one year.