India's largest realty firm DLF that is known to develop spaces for leasing, recently sold nearly 50,000 sqft of prime office space in Gurugram for about Rs 150 cr due to rising demand for commercial properties from corporates and institutional investors.
DLF has adopted both lease/sale model for its 12 lakh sqft office building 'Two Horizon Center' on Golf Course road, Gurugram in Haryana. The company has sold about 48,000 sqft of office space in this project at a basic selling price of more than Rs 25,000 per sqft to a big corporate house. With this deal, the company is now left with just a little over 1 lakh sqft in this project.
The project 'Two Horizon Center' houses Samsung, Harvard Business Review, KIA Motors and Hero Cycles among others. In 2016, DLF had leased about 3.5 lakh sqft of office space to Samsung India Electronics in this project.
Two Horizon Center is part of the 12-acre Horizon Center complex that also houses the fully-leased One Horizon Center project, which was developed jointly by DLF and US-based Hines. Horizon Center commands a monthly rental of about Rs 150 per sqft.
Unlike listless housing sector, office segment has been performing extremely well and witnessed several big ticket deals in the last few years.
DLF promoters recently sold 40 per cent of their stake in rental arm DLF Cyber City Developers Ltd (DCCDL) for about Rs 12,000 cr. The deal included sale of 33.34 per cent stake to Singapore's sovereign wealth fund GIC for Rs 9,000 cr.
The promoters monetised stake in DCCDL to infuse funds in DLF for reduction of debt.
While declaring its annual result last week, DLF said that the commercial segment of the business continued to exhibit good growth. Gross leasing achieved during the year stood at 6.76 million sqft, out of which 5.96 mln sqft was attributable to DCCDL.
Apart from DLF, other players are also monetising their commercial assets. In April, Essar group sold prime commercial property Equinox Business Parks at Bandra-Kurla Complex (BKC) in Mumbai to global investment firm Brookfield for Rs 2,400 cr. Godrej Properties had in September 2015 sold 4.35 lakh sqft office space to Abbott for Rs 1,480 cr.
Shriram Properties last year sold its IT-SEZ to Xander in Bengaluru. Prestige group is also in talks with GIC to sell stake in its office portfolio.
The co-working operators are also taking large office space on lease from real estate developers as demand for shared office space is gaining momentum.