DLF pre-leases 7.7 lakh sq ft office space in Chennai to Standard Chartered GBS

Realty major DLF's rental arm has given on lease 7.7 lakh sq ft office space to Standard Chartered GBS in an upcoming commercial tower in Chennai to be constructed at a cost of around Rs 450 crore, a senior company official said on Wednesday.

DLF Cyber City Developers Ltd (DCCDL), which is a joint venture between DLF and Singapore sovereign wealth fund GIC, has leased the space in its commercial project ''DLF Downtown'' at Taramani in Chennai being developed with a total investment of Rs 5,000 crore.

"We have signed an anchor leasing deal with Standard Chartered GBS for our upcoming office building at DLF Downtown," DLF's Managing Director (Rental Business) Sriram Khattar told PTI.

Khattar said this is one of the largest office space leasing deals in recent times.

"We will be developing a built-to-suit office building of 10 lakh sq ft leasable area in this project. We have pre-leased 7.7 lakh sq ft space to Standard Chartered GBS as an anchor tenant. It is an endorsement of our quality development and project site," he said.

The construction of the prime office tower is expected to start in January 2021 and will be completed in 36 months, Khattar said, adding that the total cost would be around Rs 400-450 crore.

Standard Chartered Bank's wholly-owned subsidiary Standard Chartered Global Business Services (GBS) office in DLF Downtown will be its largest campus globally. It may take the remaining space in this 10 lakh sq ft building at a later stage.

Asked about the rental, he declined to comment.

But, property consultants said the leasing deal could have been struck at Rs 85-90 per sq ft per month, generating an annual rental income of about Rs 85 crore.

"We welcome Standard Chartered GBS to our family and will do our best to develop a landmark building while ensuring the safety and wellness of SCB employees. We will continue our passionate journey of providing safe and sustainable workspaces matching global standards," Khattar said.

He said India's office market is slow currently with corporates looking to conserve cash and deferring expansion plans, but the sentiments will improve from early next year.

Amit Grover, Executive Director, DLF Offices, said, “This strategic partnership is a testament to the success of our vision of new-age workplaces."

DLF Downtown project is spread over 27 acres and has a total leasable area of 68 lakh sq ft, largely office space with some retail portion. Around 25 lakh sq ft built-up area is under construction in this project.

In December 2017, DLF had formed a joint venture with GIC after its promoters sold their entire 40 per cent stake in the DCCDL for nearly Rs 12,000 crore.

This deal included sale of 33.34 per cent stake in DCCDL to GIC for about Rs 9,000 crore and buyback of remaining shares worth about Rs 3,000 crore by the DCCDL.

At present, the DCCDL has 33 million sq ft of office and retail portfolio, generating a total rental income of Rs 3,500 crore annually.