Realty developer DLF, backed by Singapore’s sovereign fund GIC, is planning to make an investment of Rs 5,000 crore for developing 6.8 million sq-ft IT park in Chennai, Tamil Nadu.
The project, DLF Downtown Taramani, will span over 27 acre is a joint venture (JV) with the Tamil Nadu Industrial Development Corporation (TIDCO) The proposed development along with DLF’s existing seven million sq-ft IT park at Manapakkam will take the company’s commercial portfolio in Chennai to nearly 14 million sq-ft.
Currently, the company’s office portfolio has 32 million sq-ft commercial, IT, special economic zone (SEZ) across Delhi-NCR, Chennai, Hyderabad, Kolkata and Chandigarh with another 20 million sq-ft commercial space under development and implementation in Chennai, Hyderabad and Gurugram. The Phase-I involves construction of 2.5 million sq-ft of built-up area and is expected to get over by mid-2021.
The entire development is expected to be completed in six years. The new project is expected to add additional 70,000 direct and 6,000 ancillary employment opportunities once operational. Apart from Chennai, the company is looking to expand its commercial portfolio in other cities too. DLF has identified a development pipeline of 20 million sq-ft across India and construction of 5.5 million sq-ft is underway. This will augment its existing 32 million sq-ft rental portfolio.
The company intends to take the national portfolio to over 50 million sq-ft once new projects are completed. The company is also developing 11 million sq-ft DLF Downtown project in Gurugram under DLF Cyber City Developers (DCCDL), which is a joint venture (JV) between DLF and GIC.
Promoters of DLF have sold their 33.34% stake in this rental arm DCCDL to GIC for nearly Rs 9,000 crore. The transaction was concluded in December 2017, and the company now holds the balance 66.66% in DCCDL.