The company has started construction of 6.5 million sq. ft. of commercial space, of which 3.5 million sq. ft. would be Grade-A office space and 3 million sq. ft. retail area
New Delhi: Bharti Realty, the real estate arm of Bharti Enterprises, is planning to develop a large business district near Delhi’s airport comprising 17 million sq. ft. of commercial area to tap a surge in demand for premium office and retail spaces, a top company official said.
Bharti Realty has developed over 5 million square feet of Grade-A commercial real estate with a diversified product mix of commercial, retail and lifestyle.
In Delhi’s Aerocity, the company has developed a commercial project ‘Worldmark’ with a total leasable area of around 1.3 million sq ft. It also monetised this property by selling 51 per cent stake to global investment firm Brookfield.
“We are expanding our flagship Worldmark project in Aerocity. We will be developing an additional 17 million sq. ft. of commercial space in phases,” Bharti Realty MD and CEO S K Sayal told PTI.
To begin with, he said the company has started construction of 6.5 million sq. ft. of commercial space, of which 3.5 million sq. ft. would be Grade-A office space and 3 million sq. ft. retail area. The construction works have been awarded to many companies.
Sayal said the planning for the remaining 10.5 million sq. ft. area is also underway.
“We want this commercial project to be in the list of global business districts,” he said, while outlining the vision.
Sayal did not disclose the estimated investment on development of this 17 million sq ft of commercial space.
He said the pre-leasing of commercial spaces would start later this year after achieving significant construction milestone.
“We expect to have a healthy upside in rental yield, with average office rentals in the operational part of Worldmark project already exceeding Rs 225 per sq. ft.,” he said while talking about revenue potential.
Sayal noted that the development of this large commercial project would address the shortage of premium office space in the national capital.
The demand for quality office and retail spaces has been strong in the last two years across major cities, he said, adding the trend would only strengthen because of healthy growth in the Indian economy.
Bharti Realty has bagged this project from Delhi International Airport Ltd, a subsidiary of GMR Infrastructure.
The company has been developing real estate projects mainly in Delhi-NCR and Punjab.
In April 2022, Brookfield had agreed to buy 51 per cent stake in Bharti Enterprises’ four commercial properties, including Worldmark at Aerocity in the national capital, at an enterprise value of Rs 5,000 crore.
The deal between Bharti Enterprises and Brookfield Asset Management was closed in May last year. The joint venture agreement was for a 3.3 million sq. ft. portfolio of commercial properties primarily in the Delhi-NCR region.
The four properties include Worldmark Aerocity (Delhi), Worldmark 65 and Airtel Center (Gurgaon) and Pavillion Mall (Ludhiana).
Bharti Enterprises retained the ownership of future development in this Worldmark project.
Bharti Group has presence in telecom, real estate, insurance, hospitality and food businesses.
