Mumbai-based property development firm Sunteck Realty shares rose 3.5% on March 2 after it signed an exclusive deal with Upgrad Education for a student housing facility in Mumbai, said to be the largest such deal in the country.
The company has entered into a 29-year lease agreement to lease 200,000 sq ft of prime commercial building Sunteck BKC51 to Upgrad.
Upgrad will pay close to Rs 300 psf per month as a starting rent for the area of the carpet. The total revenue generated by the project is estimated to be close to Rs 2,000 crore over the lease term.
The deal marks India’s largest-ever student accommodation deal, as UpGrad plans to set up student accommodation facilities within the leased space.
BKC51, a commercial project located near Bandra Kurla Complex (BKC), has been pre-certified as a green building by Edge-IFC, a member of the World Bank Group.
According to a statement from Sunteck Realty on March 1, the project is nearing completion and is expected to be delivered in June 2023.
In Q3FY23, the company’s net profit fell 81% year-on-year to Rs 2 crore from Rs 11 crore reported in Q3FY22. Total consolidated quarterly revenue fell 28% to Rs 97 crore from Rs 135 crore a year earlier.
The company’s shares have fallen 34% in the past six months and 10% in the past month. The stock was trading at Rs 314.65 per share on the NSE at 11.40 am, up 2.97% from its previous close, while the NIFTY Realty Index rose 1.27%.