2nd commercial project in city almost done: DLF

CHENNAI: Realty major DLF is in an advanced stage of completing its second commercial project ‘DLF Downtown’ being set up at an outlay of Rs 3,200 crore in the city in a move that would strengthen its presence here, a top official said on Friday.

The project aimed at serving clients engaged in the information technology (IT) and information technology enabled services (ITeS), banking, financial services and insurance sectors (BFSI) is expected to be completed by the year end, said Sriram Khattar, MD, DLF Rental business.

DLF Cybercity Chennai, the first project undertaken by the realty developer in Chennai, on Friday marked the completion of 15 years of operation at Manapakkam in the city. A recreational and social venue ‘The Hub’ spread across five lakh sq ft land inside the campus of DLF Cybercity Chennai was also unveiled on the occasion.

‘’DLF Downtown is coming up at Taramani at an outlay of Rs 3,200 crore. It is expected to commence operations before the end of the year... Phase I may commence operation by end of next year,’’ Khattar told reporters.

DLF is also looking at a residential project which is expected to come up adjacent to the Madras Race Course in Guindy on a six acre land. ‘’We are also planning to do another residential project in Old Mahabalipuram Road,’’ he said.

Talking about the recent layoffs undertaken by IT companies and its impact on the occupancy levels at DLF special economic zones with work from home option being provided by companies, Khattar responded saying employee layoffs were just a ‘temporary phase’ as majority of the IT companies were reporting ‘good’ growth in their financial performance.

‘’On occupancy levels, we are at 85-90 per cent at DLF Cybercity Chennai, whereas in Gurgaon, it is at 65 per cent. Chennai has the highest return to work ratio across India...,’’ he said.

Asked whether the company would focus on foraying into tier-II and tier-III cities, he replied in the negative saying, ‘’Our board has decided to focus on tier-I cities.’’ With the DLF Downtown portfolio in Taramani, Khattar said the total workspace offered by the company would be more than 14 million sq ft, to become second largest after DLF in Delhi and National Capital Region.

On fund raising plans, he said nearly 60-70 per cent of the project would be met with ‘internal accruals’ and the debt has remained about Rs 1,200 crore during the last four years.

DLF Retail business executive director Pushpa Bector said customer specific localisation levels were introduced at the special economic zones so as to bring back the employees to work.