DLF Cyber City Developers Limited (DCCDL) of realty company DLF Limited (DLF) has taken a loan of Rs 2,400 crore from state-run bank SBI (SBI). The company will refine its existing debt and fund future expansion plans.
Debt will help reduce interest cost
Vivek Anand, CFO of DLF Group, said that the company has taken the loan at a rate of 7.35%. This will help the company to reduce interest cost. He said that the loan of 1.95 thousand crore rupees will be used for refinancing and 450 crore for other works in future.
DCCDL’s annual income
DCCDL is a joint venture of DLF and Singapore-based Sovereign Fund GIC. Its office is in 33 million sq ft. The annual rental income of the company is 3.5 thousand crores. DLF holds 66.66% stake in DCCDL. While GIC owns 33.34.
According to the information, this loan has been taken through the LRD route. The company has taken this loan by showing an area of 2.4 million sq ft in Cyber City, Gurugram. DCCDL currently has a total debt of about 19.5 thousand crores.
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Corona epidemic effect
According to Vivek Anand, it is one of the largest loans made by any government bank during the Covid-19 epidemic. It also shows our strong rental profile and ability to generate cash for long term. He said the company planned to develop 18 million sq ft of commercial assets. Of this, construction of 4 million sq ft is already going on in Chennai and Gurugram.
Vivek Anand on rental business during Corona stated that DCCDL’s rental collection and occupancy level has been more than 95% strong during the first half of the current financial year and further outlook remains positive as well.
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Estimates of growth in business
On the retail real estate segment, he said that the shopping mall business has also been badly affected during the Corona epidemic and lockdown. However, after the mall has been allowed to open since June, the level of customers has reached 50-60% of the pre-Covid level. It may look further up in the coming days. Because now multiplex has also been allowed to open.
Vivek Anand hopes that the company’s rental income will increase in the coming days. Because the cyber park project has started from this month. In fact, the company expects to earn Rs 350 crore annually from this 2.5 million sq ft project.
In December 2017, DLF promoters sold around 40% stake in DCCDL to Singapore-based Sowran Fund GIC. GIC paid 12 thousand crore rupees for this.
