hema

Indian real estate giant, DLF Ltd., has got a nod from Delhi Development Authority (DDA) to develop an International Convention Centre at Dwarka in New Delhi. The project will come over an area of approximately 2 million sq ft and is likely to be completed over 3-4 years.

The proposed Centre will house a convention and exhibition centre, hotel complex and an array of other facilities including accommodation for international students/diplomats, exclusive recreational club etc.

The hotel and retail space of the Centre will be rented out on lease basis. This would bring DLF a handsome rental income.

To harvest more, DLF has tied up with Tata Retailing Services for development of shopping malls. The company holds a large land bank but to take a call on this order would be too early.

Although, the 6,000 crore project holds immense importance for DLF but it would not appear in the topline until 2009-10. As far as the profitability is concerned, it would be reflect only in 2010-11.

It is a boom time for DLF. The company’s stocks rose by almost 5.5% on a single day to close at Rs 643. Having listed at 11% premium to its issue price of Rs 525, the stock is trading at a price-to-earnings (P/E) ratio of 56.