DLF to invest 1,700 crore for a new mall in Gurgaon

In order to grow its company, real estate giant DLF is expected to begin building on a new 25 lakh square foot shopping mall in Gurgaon this quarter for about Rs 1,700 crore amid a surge in demand for quality real estate space from retailers. At present, DLF has a retail footprint of around 42 lakh square feet comprising nine properties, including malls and shopping centers, mainly across Delhi-NCR. Around 3.4 lakh square feet retail portfolio is under DLF Ltd and the rest under the DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore sovereign wealth fund GIC. In an interview, DLF's Vice Chairman and MD Sriram Khattar highlighted that the retail sector has bounced back sharply post-COVID pandemic and there has been a strong growth in footfalls and sales in shopping malls. "We are likely to start construction of Mall of India, Gurgaon, in the third quarter of this fiscal year", he stated.

Khattar who has recently been elevated to this new position. Asked about the investment in this upcoming mall, he said the company already owns the land historically while the construction cost is estimated to be around Rs 1,700 crore. Khattar said the company is constructing a premium mall in Goa of around 6 lakh square feet. DLF is also developing high-street shopping centres near its housing projects to cater to the requirements of people living around. It is already constructing these shopping centres at DLF-phase 5, Gurgaon and Moti Nagar, Delhi. In an investors' presentation for the first quarter of the 2023-24 fiscal, DLF had said, "Significant increase in retail presence; Portfolio to grow to 2x in next 4-5 years". DCCDL's consolidated revenue during the April-June quarter stood at Rs 1,412 crore, reflecting a year-on-year (y-o-y) growth of 12 percent. The consolidated profit for the quarter stood at Rs 391 crore, a y-o-y increase of 21 percent.

Its revenue from retail business stood at Rs 187 crore during the first quarter of this fiscal year. At the group level, DLF has clocked a 12 percent rise in consolidated net profit to Rs 527 crore in the first quarter of this fiscal from Rs 469.57 crore in the year-ago period. Total income rose marginally to Rs 1,521.71 crore in the April-June period of 2023-24 financial year from Rs 1,516.28 crore in the year-ago period. DLF Group is primarily engaged in the business of the development and sale of residential properties (the development business) and the development and leasing of commercial and retail properties. It has developed more than 158 real estate projects and developed an area in excess of 340 million square feet. The group has an annuity portfolio of over 42 million square feet. DLF Group has land banks to develop 215 million square feet across residential and commercial segments.