Sunteck Realty Ltd, a Mumbai-based real estate developer, has recently leased out a commercial building located in Mumbai's prestigious business district, Bandra Kurla Complex (BKC), to Bennett, Coleman & Co (BCCL) for a lease period of 29 years. The deal is expected to generate rent revenue exceeding ₹2000 crore over the course of the lease.
The commercial property, known as Sunteck Icon, boasts a built-up area of two lakh square feet. Under the terms of the lease agreement, BCCL will pay a monthly rent of ₹300 per square foot, translating to an annual rent of ₹72 crore.
This strategic move comes on the heels of Sunteck Realty's previous lease agreement with edtech firm UpGrad for another building in the same vicinity, also for a duration of 29 years, yielding similar rental revenue for the developer.
Sunteck Realty anticipates that the combined rental income from both buildings will contribute to a steady annuity income stream for the company. With a portfolio comprising approximately eight commercial assets, predominantly in Mumbai, and one in Goa, the company is positioned to capitalize on the commercial real estate market in key metropolitan areas.
In its third-quarter results presentation, Sunteck Realty projected an annual rental income of ₹70 crore for the current fiscal year, with an anticipated growth to ₹320 crore by the fiscal year 2027.
This leasing deal underscores Sunteck Realty's commitment to expanding its commercial real estate footprint and leveraging prime locations to generate substantial rental income, bolstering its position in the competitive Mumbai real estate market.
Image source- nyoooz.com
