Suntek Realty leases out its Commercial Building in Mumbai to Bennett Coleman

Sunteck Realty Ltd, a Mumbai-based real estate developer listed on the stock exchange, is growing its annuity income business by securing a long-term lease agreement with Bennett, Coleman & Co Ltd for their second premium commercial building at BKC Junction, Sunteck Icon.

According to the fileThis is to inform you that Sunteck Realty Limited (‘the Company’) expands its annuity income business, gives its second building at BKC junction, Sunteck Icon to Bennett, Coleman & Co Ltd. for a long-term tenure."

Sunteck Icon's built-up area spans around 200,000 square feet, with a rental rate of Rs. 300 per square foot per month based on the carpet area. This arrangement is expected to yield a revenue of nearly Rs.2,000 crore over a period of 29 years. 

The company stated in a media statement, "This encompasses a major milestone for the company as this is the second building on BKC Junction for Sunteck after leasing out BKC51 to Upgrad last year in March 2023 for 29 years."

Chairman of Sunteck Realty, Kamal Khetan commented, "Building on the momentum of our 2023 success with the leasing of BKC51 to Upgrad, it is with great pleasure that we announce the successful deal of Sunteck Icon, our premium, world‐class commercial building, with Bennett, Coleman & Co Ltd. The combined performance of the two rental assets is projected to yield an impressive average return of 30% on the invested capital."

He further added,"We envision more such developments in city‐centric prime locations, and anticipate more such marquee transactions, thereby further solidifying our position as a leading developer in the real estate segment. Strengthening our commercial portfolio, going forward we will be strategically positioning ourselves in the two key business districts of the Mumbai‐ Bandra‐Kurla Complex (BKC) and Oshiwara District Centre (ODC), Goregaon (West).”

On the BSE, the shares of Sunteck Realty Ltd ended at Rs.429.70, up by Rs.3.75, or 0.88%. The company has a vast and diversified pipeline of projects coming forth which is expanded over 50 million square feet of land for 32 projects.