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%.