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Bhumika group raises Rs 100 crore, in talks to raise more for Udaipur mall

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NCR-based realty developer Bhumika Group has raised close to Rs 100 crore between debt and two Lease Rental Discounting (LRD) transactions, said, Uddhav Poddar, MD of Bhumika Group.

The company is in talks to raise another Rs 200 crore debt to fund the construction of phase 2 of its 3.5 lakh sq. ft. retail space in Udaipur based Urban Sqaure mall. Majority or phase 1 has already been leased out.

The company is in talks to raise another Rs 200 crore debt to fund the construction of phase 2 of its 3.5 lakh sq. ft. retail space in Udaipur mall. Majority of phase 1 has already been leased out.

The tenants have started fit outs in the mall that will be the largest in Udaipur and will become operational in August 2022.

“Keeping in mind the demand for more space, we have advanced the construction of phase 2, which will be of a similar size. In addition to the retail area, there will be a hotel and office tower as well,” Poddar said.

Companies that operate rental assets raise money from banks through lease rental discounting using rental receipts as collateral. In LRD, the bank considers the long-term rental income of the company and loan repayment is done using the rental income.

 “In the next phase of our mall in Udaipur, we will invest another Rs 400 crore at the group level. We also have a logistic business and the funding will be used to expand that business,” Poddar said.

The group is in talks for a joint development agreement with the land owner to develop villas and low-rise buildings in Udaipur and Alwar. The residential township in Udaipur and Alwar will be spread across 15-20 acres.

“We are also planning a retail project in Jaipur. Post pandemic, tier 2 cities have emerged as the main destination for retail stores. Many luxury brands are also willing to open stores in these cities,” said Poddar.

Urban square is one of the few projects in Udaipur, where construction is going as per the schedule timelines. “The mall’s utility is demonstrated by the regular attention displayed by prominent brands in it. We’ve always talked about positioning, and this mall will help brands achieve their goals.

The goal is to provide the greatest lifestyle for the city’s residents, while also catering to the international tastes of visitors,” Poddar said.

Bhumika Group also has plans to expand in cities like Jaipur, Jodhpur, Kota, Bikaner, Ajmer & Delhi NCR.