Housing Development Finance Corp has extended Rs 200 crore funding to realty developer DivyaSree Infrastructure Projects for construction of a part of the commercial project Technopolis in Bengaluru, said two persons with direct knowledge of the development.
The non-banking finance company will charge below 11% interest for the loan with a total tenure of 48 months. The construction finance loan is expected to be repaid in one single bullet payment of Rs 200 crore at the end of 48 months from the date of the first disbursement or earlier at the option to be exercised by HDFC. The loan will be serviced through monthly interest during this period.
The Bengaluru-based developer will be using the funds for the construction of nearly 1 million sq ft development spread over 10 floors of the Technopolis project. The office building has been designed and being constructed as a built-to-suit project for a specific customer. “As part of the agreement, the borrower has created an exclusive mortgage and charge over the said property in favor of HDFC,” said one of the persons mentioned above.
Technopolis is a 68-acre mixed-use project with a total development potential of 5.5 million sq ft, including commercial office spaces, residential villas and luxury apartments.
The under-construction office spaces in this project are being developed as built-to-suit spaces for tenants like Xerox, Deloitte, Thomson Reuters, and Landmark Group totaling around 2.5 million sq ft.DivyaSree’s Managing Director Bhaskar Raju declined to comment on the story. Last year, private equity player Kotak Investment Advisors announced a $400 million fund in partnership with DivyaSree Developers to build and acquire commercial office assets across the country.
The developer has developed over 19 million sq ft office spaces since 2005 and has 6 million sq ft offices under construction across Bengaluru, Hyderabad, and Chennai. It counts Cisco, Dell, Oracle, Google, Accenture, IBM, Wells Fargo, Cognizant, UBS among its clients.