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Sunteck Realty, a Mumbai-based real estate developer, has signed a 29-year lease agreement with edtech startup upGrad for the entire commercial tower by the name Sunteck BKC51, located in Mumbai's Bandra-Kurla Complex (BKC). The deal, which has a cumulative rental pay out of Rs 2,000 crore, will set up a student accommodation facility and an offline experience centre for upGrad. This marks the largest student housing deal ever concluded in India.
The Sunteck BKC51 tower, which is adjacent to the Brookfield Group's Equinox complex on BKC junction, has over 200,000 square feet of development that will now be configured for student housing. The commercial tower possesses green building pre-certification from Edge-IFC, a member of the World Bank Group. The project is near completion stage and the possession is expected to be completed by June 2023, after which upGrad will commence operations from the new facility.
UpGrad will be paying a monthly rental of ?3.5 crore for a carpet area of over 121,000 square feet. The agreement includes a clause to escalate both rentals and deposit amount by 4% every year after the initial five years and three years, respectively. As part of the deal, upGrad has paid an upfront deposit of ?18 crore. The property consultant JLL India acted as the exclusive advisor for this deal.
The Bandra-Kurla Complex (BKC) is a planned commercial complex in Mumbai and is home to several major corporations, including the National Stock Exchange of India, Citigroup, and J.P. Morgan. The area is also home to several educational institutions, making it an attractive location for edtech companies.
This deal marks a significant development in the edtech sector in India. The demand for online education has increased significantly in the wake of the COVID-19 pandemic, and several edtech companies have raised significant amounts of funding in the past year. This deal demonstrates that edtech companies are now investing in physical infrastructure to provide better services to their customers. It also highlights the growing importance of Bandra-Kurla Complex as a hub for edtech companies.
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