DLF Cyber City applies for denotification of office space in SEZs
DLF Cyber City Developers (DCCDL), the rental arm of DLF, has applied for denotification of 1.1 million sq ft of office space in Special Economic Zones and is hopeful to start leasing it from March end, Sriram Khattar, managing director, rental business, DLF, told investors during a post-earnings earnings call.
Special Economic Zones (SEZ) have higher rental vacancies at present than areas that are not deemed export zones.
The government in December 2023, revised the SEZ rules.
The amendment permitted partial and floor-wise denotification, introducing fresh possibilities for utilization within SEZs, especially benefiting the IT and ITES companies as they currently dominate the SEZ landscape.
«We have already applied for all the SEZ floors that could be de-notified under the new circular. If we look at an overall portfolio of offices of about 13 million sq ft, we have applied for 1.1 million to be notified.
As part of the process, we have to simultaneously go to a chartered surveyor, preferably recognized by the government authorities, and work out the level of duty drawback we have to pay and we are in the process of doing that,» said Khattar.
Consolidated revenue of DLF Cyber City Developers stood at Rs 1,476 crore, reflecting y-o-y growth of 8%; consolidated profit for the quarter stood at ₹434 crore, a y-o-y growth of 21%.
