Indiabulls Housing Finance has signed a deal of three commercial lease rental discounting transactions with Mantri Developers, ASF Group and Ambience for a total loan of Rs 1,700 crore.
Out of three commercial properties, there are two office properties and one retail mall – Mantri Square Mall – which is spread across 1 million sq. ft. in Bengaluru. The developers raise an annual rent of Rs 150 crore from the tenants like Marks & Spencer, Reliance Retail, Max Hypermarket India, Lifestyle International, Pantaloons Fashion & Retail and Shoppers’ Stop.
ASF group and Ambience generate total annual rent of around Rs 100 crore and Rs 75 crore respectively. Ambience group has borrowed funds against rental income of its office complex corporate Office Tower II sprawled over 1.1 million sq. ft. that provides office space to multiple companies like Panasonic, SABIC, Zara, Amazon and Markit.
Commercial office space lending has been gaining popularity because several lenders consider this as a low-risk product as it gives stable rent cash flows for repayment.
“The deals have been concluded recently. These three income-producing properties spread over total 4.2 million sq ft have an annual rental income of around Rs 350 crore,” says a person familiar with the development.
Source: ET Realty