Sunteck shares gain after signing lease deal with Upgrad

Mumbai-based real estate development company Sunteck Realty gained 3.5 percent on March 2 after it signed an exclusive deal for with Upgrad Education for a student housing facility In Mumbai, said to be the biggest such agreement in the country.

The company entered into a 29-year lease agreement to lease out 2 lakh square feet of premium commercial building Sunteck BKC51 to Upgrad.

Upgrad will pay close to Rs 300 per square feet a month on a carpet area basis as the starting rent. The total revenue generated from this project is estimated to be close to Rs 2,000 crore over the lease tenure.

The deal marks the largest student housing agreement ever concluded in India, as UpGrad plans to set up a student accommodation facility within the leased space.

BKC51 is a commercial project located near the Bandra Kurla Complex (BKC) and has been awarded a Green Building Pre-Certification from Edge-IFC, a member of the World Bank group.

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According to a statement released by Sunteck Realty on March 1, the project was nearing completion and possession was expected by June 2023.

In Q3FY23, the company’s net profit dipped 81 percent YoY to Rs 2 crore from Rs 11 crore reported in Q3FY22 . Total consolidated income for the quarter declined 28 percent to Rs 97 crore from Rs 135 crore in the year-ago period.

The company’s share price has declined 34 percent in the past six months and 10 percent in the past month. At 11.40 am, the scrip was trading at Rs 314.65 apiece on the NSE, up 2.97 percent from the previous close while the NIFTY Realty Index was up 1.27 percent.