DLF to invest Rs16,000 crore to build 20 big malls

DLF to invest Rs16,000 crore to build 20 big malls

New Delhi: Buoyed by the success of organised retail in the country, real estate industry leader DLF plans to invest Rs16,000 crore over four years to develop about 20 large shopping malls across the country.

“Going forward, shopping malls will be an area of important focus for DLF. This will help us to make the maximum leverage of the retail boom in India," DLF Retail managing director Arvind Nair said.

He, however, did not divulge investment to be made in development of 22 million sq ft of shopping mall space.

According to a company source, DLF is planning to develop around 20 large shopping malls in the next 3-4 years, which would entail an investment of Rs16,000 crore.

Billionaire K. P. Singh-promoted DLF is coming out with a 4.45 million sq ft “Mall of India" in Gurgaon - touted as the largest such facility in the country.

The shopping malls developed by DLF would come up at places like Chennai, Kochi, Hyderabad, Kolkata, Bangalore, Panipat, Jalandhar, Baroda, Goa, Mumbai and Ludhiana.

It may lease out space to reputed national and global brands including Louis Vuitton, Armani, Gucci, Cartier, Christian Dior and Fendi, the source added.

The malls would be broadly positioned in four categories -- destination, neighbourhood, luxury and premium malls.

DLF, which raised over Rs9,000 crore from the capital market in June, last week announced to borrow about Rs6,000 crore from overseas market to execute its business plan that includes investment in projects in India and abroad and buying shares in DLF Offices Trust’s IPO in Singapore.

DLF, which currently has a market capitalisation of about Rs1,48,000 crore, early this month bagged a project in Bangalore to develop a township spread over 9,000 acres, which could entail an investment of Rs60,000 crore.

It also sealed the country’s biggest land deal by buying 38 acres in the national capital for Rs1,675 crore.

The company has over 289 million sq ft-equivalent existing and 615 million sq ft of planned projects. It has presence in all the verticals of real estate, including group housing, office, retail, SEZs, hotels and townships.

DLF’s share price closed at Rs865.65 on October 12, down 5.76%, in a generally weak market.