DLF to invest Rs 1,700 cr for new shopping mall in Gurugram

New Delhi: Realty major DLF is likely to start construction of its new 25 lakh square feet shopping mall in Gurugram this quarter at a cost of around Rs 1,700 crore to expand business amid 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 centres, mainly across Delhi-NCR. Around 3.4 lakh square feet retail portfolio is under DLF Ltd and rest under the DLF Cyber City Developers Ltd (DCCDL), a joint venture between DLF and Singapore sovereign wealth fund GIC.

In an interview with PTI, DLF's Vice Chairman and MD (Rental Business) 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, Gurugram in the third quarter of this fiscal year," said Khattar, who has recently been elevated to this new position.

Asked about the investment on 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, Gurugram and Moti Nagar, Delhi.

In an investors' presentation for the first quarter of 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 an year-on-year (y-o-y) growth of 12 per cent. The consolidated profit for the quarter stood at Rs 391 crore, a y-o-y increase of 21 per cent.

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 per cent 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 development and sale of residential properties (the development business) and the development and leasing of commercial and retail properties (the annuity or rental business).

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.