Varde funds Phoenix $155 mn for two office developments in Hyderabad

To date, over 1.5 million square feet has been pre-let to two multi-national companies, reflecting the quality and location of the assets.

Hyderabad: Varde Partners, a global alternative investment firm, announced it has provided construction financing on two pre-leased office assets in the Gachibowli Financial District of Hyderabad. The $155 million (over Rs 1,130 crore) facility will be used to refinance and fund to completion over 2.5 million square feet across the two Grade A developments owned by Phoenix Group.

To date, over 1.5 million square feet has been pre-let to two multi-national companies, reflecting the quality and location of the assets. Construction of both projects is well-advanced, with sub-structure development complete and super-structure phases underway.

---

Hyderabad is a recognised global tech hub, with the city’s financial district home to a large number of multi-national tech, financial services and professional services companies. The city is one of the fastest growing metropolitan cities in India and one of the strongest markets in the country for office absorption, Varde said in a statement.

Varde believes that India’s real estate market is experiencing a significant imbalance in the supply and demand of capital, leading to many businesses with robust balance sheets seeking alternative sources of capital.

“We see significant opportunity across the Indian office market for both the financing and purchase of assets, in a market that offers potential strong cash-flow visibility, multinational tenants and strong absorption,” said Tim Mooney, partner and global head of Real Estate at Varde Partners.

“We believe that a real estate cycle is upon us and while not nearly as pronounced as the cycle brought on by the global financial crisis, the opportunity set is significant and growing,” Mooney added.

---

Now you can get handpicked stories from Telangana Today on Telegram everyday. Click the link to subscribe.

Click to follow Telangana Today Facebook page and Twitter .

---