Bhumika Group raises Rs 100 crore and plans to raise for Udaipur mall
- ByStartupStory | May 21, 2022
Bhumika Group, an NCR-based real estate developer, has raised around Rs 100 crore in debt through loans and two Lease Rental Discounting (LRD) transactions to fund the construction of phase 2 of its 3.5 lakh sq. ft. retail area in Udaipur mall. The company is in discussions to raise another Rs 200 crore in debt. The first phase’s majority has already been leased.
Uddhav Poddar, the MD of the company said that the tenants have begun fitting out the mall, which will be the largest in Udaipur when it opens in August 2022. The company has advanced the development of phase 2, which will be similar in size, in order to meet the demand for more room. In addition to the business tower, there will also be a hotel, he said while concluding.
Rental asset managers borrow money from banks by using rental earnings as collateral for lease rental discounting. The bank uses LRD to evaluate the company’s long-term rental revenue, which is then utilised to repay the loan. Poddar further stated that the business will invest another Rs 400 crore in the next phase of the Udaipur mall, with the cash going toward expanding the logistics firm. The group is discussing a cooperative development contract with the landowner in Udaipur and Alwar to create villas and low-rise structures. The residential townships would also encompass 15-20 acres in Udaipur and Alwar.
The business is also planning a retail project in Jaipur. Following the epidemic, tier-II cities have emerged as the key destinations for retail stores. Many premium companies are also looking to open stores in these locations. Urban Square is one of the few projects in Udaipur that is moving along on schedule. It also intends to set up shop in Kota, Jodhpur, Jaipur, Bikaner, Ajmer, and Delhi-NCR.
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