DLF awards Rs 800-crore contract to L&T for Gurgaon office complex

NEW DELHI: Realty major DLF has given an about Rs 800 crore contract to L&T for construction of its new office complex in Gurgaon.

The 12-acre project would be developed at a cost of Rs 1,100 crore and has a total leaseable area of 2 million sq ft.

DLF has awarded a construction contract to L&T of about Rs 800 crore, sources said.

The construction of this office project has started and is expected to be completed by March 2018.

The project is being designed by Hafeez Contractor and managed by Hill International.

The project would be platinum LEED certified, with solar panels on the roof and facility for recycling of waste water.

The country's largest realty firm has a rental assets of about 30 million sq ft, largely in Gurgaon, with an annual rental income of about Rs 2,700 crore.

The company has decided to develop a new office complex as it's office stock has almost exhausted. DLF is left with limited office space in its two projects at Gurgaon.

To monetise the commercial assets, DLF promoters have decided to sell 40 per cent stake in rental arm DLF Cyber CIty Developers Ltd (DCCDL).

DLF owns remaining 60 per cent stake in DCCDL, which holds the bulk of office and retail complexes.

The deal is expected to be completed by July this year as more than 25 institutional investors have shown interest to take part in bidding process.

Promoters will re-invest a significant part of the amount realised from the sale into DLF, India's largest realty firm.

Market sources had earlier said that the deal size could be about Rs 12,000 crore.

The annual rental income of DCCDL is about Rs 2,250 crore, while total expected rental income of the entire group is Rs 2,700 crore in this fiscal.

DLF has a land bank of 281 million sq ft, of which 37 million sq ft is under construction at the end of the quarter.

Earlier this week, DLF reported 24 per cent rise in net profit to Rs 163.95 crore for the October-December quarter on higher sales and one-time gain from GIC deal.

Revenue rose by 43 per cent to Rs 2,981 crore in third quarter from Rs 2,080 crore a year-ago.

DLF's net debt fell to Rs 21,411 crore as on December 31, 2015 from Rs 22,520 crore at the end of the second quarter of current fiscal.