DLF plans to invest Rs 2,000 cr

Diversified real estate major DLF Universal Group has devised a plan to invest over Rs 2,000 crore for building commercial office space of 20 million square feet across the various IT parks by 2007.

"We aim at commercial office space of 20 million square feet by 2007," Chief Executive Arvind Khanna said.

Over Rs 2,000 crore would be spent to build the targeted space, he said, adding 35 per cent growth in the IT and IT-enabled sectors induced the company to go in for such expansion.

As per the expansion plan, DLF Commercial Developers, a wing dedicated to developing high-end office space, would complete the construction of office space at the IT parks in Kolkata and Chandigarh during the first phase scheduled to be over by this year, while such space would be constructed in Pune, Hyderabad and Chennai by 2006.

By 2007, the company plans to offer its office space at the Bangalore IT Park.

The built-up commercial office accommodation in IT parks would be leased out, he said, adding "we have devised a leasing model, unlike the conventional property sale model". He said the break-even for the investment would be achieved after seven years from the date of leasing.

DLF has started civil construction work in Kolkata and Chandigrah at the same time last year and was now negotiating with the possible IT companies for leasing out the built-up space.

At the Chandigarh IT Park, Khanna said, "A host of MNCs have evinced keen interest in booking space in our buildings and hope the first occupant will start operations in three months. We are receiving enquiries for space ranging from 5,000 square feet to 200,000 square feet."

However, the project manger (operations) of US-based Virsa, Amit Khanna, said, "We are almost through with negotiation for space leasing and hope to sign a deal early next month so that we can start our operations as early as possible".

The lease rate for the DLF buildings at the Chandigarh IT Park stands at Rs 25 per square foot. A total of six DLF buildings would offer 800,000 sq feet of commercial space at the IT Park. The project has come up with an investment of Rs 240 crore.

The IT Park is spread over 12.4 acres at the Chandigarh Technology Park. It has six office blocks. Located at the foothills of the Shivalik, the project includes a state-of-the-art retail and entertainment complex.

The Chandigarh administration has developed the IT park with Infosys as the anchor company. Infosys is also building an exclusive campus at the park.

"We have provided 123 acres of land valued at Rs 150 crore, and Rs 12 crore for infrastructure development," said Vivek Atray, director, IT, Chandigarh administration.

He said the administration would invite bids by July to offer land to small- and medium-size export-oriented IT companies.Sanjay Tyagi, centre head, software technology parks, said the units located in the park would qualify for all types of fiscal sops extended to IT and IT-es sector including the export incentives.

According to Arvind Khanna, DLF does not sell but lease out space and continues to own, operate and maintain the property. He said the firm managed properties at the least cost. The Chandigarh Technology Park would have air-conditioning, support in power supply, and maintenance. He said 7,000 persons employed would get space for car parking.

He said the company was contemplating of building retail and housing complexes in Amritsar, Jalandhar, and Ludhiana. It was keen on a housing complex at the Chandigarh Technology Park, he added.

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Growing big

• Over Rs 2,000 crore will be spent to build the targeted space across the various IT parks
• DLF Commercial Developers will complete the construction in Kolkata and Chandigarh during the first phase
• By 2007, the company plans to offer its office space at the Bangalore IT Park, which will be leased out
• A total of six DLF buildings will offer 800,000 sq feet of commercial space at the Chandigarh IT Park