Second Commercial Project In Chennai Almost Complete, Says Realty Major DLF

Realty major DLF is in 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) was expected to be completed by the end of the year, DLF Rental business managing director Sriram Khattar said here.

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 select reporters.

Apart from this commercial project, DLF was also looking at a residential project which is expected to come up adjacent to 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 layoffs undertaken by IT companies in the recent past and 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.

"With DLF Downtown in Taramani, we are thrilled to offer another futuristic project that aligns with our vision of building pioneer, sustainable and best of the class workplaces," Khattar said.

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.

"For example, we have a food court which offers four different kinds of biryanis...this is just one of the localisations we offer to employees of the companies. We sit with the companies and discuss and do based on their requirements," she said.

A wellness centre comprising gymnasium among others which was not planned earlier was also introduced later at its commercial projects to meet the clients' demand, she said.

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