Realty major DLF and US-based property player Hines have secured a Rs 2,600 crore loan from HDFC to construct a prime office complex in Gurugram. “The second joint venture between Hines and DLF has secured a construction loan of Rs 2,600 crore from HDFC Ltd,” Hines said. DLF and Hines entered into their first joint venture in 2008 to develop One Horizon Center in DLF-5 Gurugram, Haryana. They formed a joint venture in March last year to develop an office project in Gurugram. DLF bought 11.76 acre land parcel for nearly Rs 1,500 crore through e-auction conducted by the Haryana government in February 2018.
In March last year, DLF sold 33 per cent stake in this commercial project to Hines, for around Rs 650 crore.
On Wednesday, Hines said the project will be developed in two phases – 2.55 million sq ft will be developed in the first phase while the rest will be developed in the second phase. The construction will commence soon, and buildings will go live starting 2023. The land parcel is located across the highway to the existing business district of DLF Cybercity.
Commenting on the development, HDFC’s MD Renu Sud Karnad said, Having worked as a financial partner with Hines and DLF for One Horizon Center, we are delighted to grow our partnership to set new standards for commercial buildings in India. DLF’s whole-time director Ashok Tyagi said, Implementing international best practices in the Indian conditions has been the hallmark of our partnership with Hines. After a successful collaboration in the past, we are now looking forward to take the relationship forward with the new development. He said HDFC’s support validates the company’s long-term view on the commercial real estate sector as an asset class.
Amit Diwan, MD and Country Head for Hines India, said, We have been working together with DLF for the past ten years to create landmark developments. One Horizon Center on Golf Course Road, one of the finest office spaces in India, is a case in point.” “We are now taking this partnership to the next level by joining hands to develop future-proof office project incorporating Hines’ latest knowledge from around the world,” he added.
India’s office market has been performing very well in last few years despite overall slowdown in the real estate market. Net office space leasing stood at an all time high of around 45-50 million sq ft in 2019 calendar year.
The demand is expected to fall by 30-50 per cent in 2020 but the medium to long term prospects of office market remain bullish.