New Delhi: IndusInd Bank has Invested Rs 140 crore in Sushma Group’s commercial projects in Chandigarh, said the real estate firm’s executive director Prateek Mittal.
“Institutional investors are looking for opportunities in tier:2 cities and developers with good track record manage to get funding. Post-Covid there has been a lot of interest in funding holiday homes and commercial projects,” Mittal told ET.
IndusInd Bank has committed Rs 50 crore to Sushma Capital, of which Rs 25 crore is fresh funding and the balance will be used to give exit to DMI Finance. Additionally, IndusInd Bank has committed Rs 90 crore fresh funding for Sushma Pristine.
Sushma Capital and Sushima Pristine are under-construction commercial projects with a combined area of 147,000 sq.ft. of office space and 769,000 sq.ft. of retail space, including fine dining, food courts, fashion brands and entertainment zones.
Developers in tier-2 cities have started getting institutional funding as Covid-19 increased the demand for quality housing and commercial space in smaller cities.
Last year, Sushma group had raised Rs 100 crore from Motilal Oswal to fund the construction of its 10.75 acre project in Zirakpur Phase of Sushma Capital is operational, while possession of phase-1 of Sushma Pristine will start in
2024. “Aggressive financing of the commercial segment by banks and financial Institutions suggests the bright future of commercial real estate in tier 2 cities, said Mittal.
Sushima group has delivered more than 5 million sq ft in the past 14 years while about 10 million sq ft is under construction.
With the increase in internet penetration, adoption of technology and the pandemic, tier 2 cities are gradually seeing increased activity in real estate, which is one of the largest contributors to the country’s gross domestic product. Private equity investments inflows into the Indian real estate sector stood at Rs27,100 crore at the end of 2022, on a par with the investments in 2021, according’to a report by Savills.
Commercial office assets attracted 45% of the investments in 2022, followed by residential and retail sectors which also witnessed robust growth, riding on end-user demand.
Source : https://economictimes.indiatimes.com/industry/services/property-/-cstruction/indusind-bank-invests-rs-140-crore-in-sushma-groups-commercial-projects-in-chandigarh/articleshow/97913789