DLF’s rental arm DLF Cyber City Developers recently raised ₹2,400 crore from SBI against its office projects in Gurugram and Chennai. Bulk of the loan, DLF said, will be used to refinance debt while the rest will be for future expansion
DLF has been firming up plans to launch mid-income housing, in the ₹60-80 lakh category, as demand for homes in this segment is good in an otherwise tepid residential market, Mint reported in September.
“DLF will talk about its strategy for mid-income housing and the development cycle which the company has chalked out. DLF has also been able to reduce fixed costs by 30% after it said it would adopt cost rationalization in the beginning of the financial year," said a person familiar with the development.
Adhidev Chattopadhyay, research analyst, ICICI Securities Ltd said it will be interesting to watch DLF’s commentary and performance of its shopping malls.
Malls were hit hard due to the pandemic and ensuing lockdowns but are slowly getting back on their feet.
“We will also look at debt reduction and their outlook on commercial office projects," he said.
In one of the largest lease rental discounting (LRD) transactions this year, DLF’s rental arm DLF Cyber City Developers Ltd (DCCDL) recently raised ₹2,400 crore from State Bank of India (SBI) against its office projects in Gurugram and Chennai. Bulk of the loan, DLF said, will be used to refinance existing debt while the balance will be used to fund future expansion.