Tuesday, June 05, 2007

DLF to pump Rs 4,000cr in Bangalore realty and 1800 in Chennai

BS Reporter / Bangalore June 5, 2007
The property market in Bangalore is set to get hotter with the entry of DLF, which plans to build 10,000 residential apartment units in the city. The real estate major is also building a 2 million sq ft mall in the state capital.

According to an announcement made by the company today, an investment of Rs 3,000 crore, in developing the apartments coming up over 100 acres, is planned. "We have about 80 acres of land on Bannerghatta Road and 20 in Electronics City," A S Minocha, chairman, DLF Commercial Developers, said. According to Minocha, work on the project will start in the next three to four months, and the first set of apartments would be ready in two years.

Work on the mall, which is coming up in Whitefield, has already begun and will be open for commercial use in about 18 months, Minocha said. DLF, which is a late entrant in the real estate sector in Bangalore, is investing Rs 1,000 crore in the mall. The mall is likely to be one of the biggest in the country.

The company said they were also looking at buying land to develop office buildings in the city.

The projects are part of the proposed investment plans of DLF. The company intends to fund the projects through the Rs 9,500 crore public issue which opens on June 11, 2007.

DLF is expected to raise Rs 8,750 crore to Rs 9,650 crore through its public issue of 17.5 crore equity shars this month. Of the net proceeds of the issue, the company would pump in around Rs 3,500 crore for developing existing projects while the same size of funds would be utilised for acquiring lands and developments rights for new projects.

A major chunk of money raised through the public issue is expected to be injected in its existing projects in Gurgoan, Chennai, Hyderabad and Bangalore. In addition to the two new housing projects in Bangalore, he said the company would also launch another apartment project in Chennai.

DLF has already acquired 130 acres in OMR Road in Chennai to construct 6,000-7,000 apartments with an estimated investment of Rs 1,800 crore.

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