Bhumika Group raises Rs 100 crore for Udaipur mall and is in talks to raise additional.

Bhumika Group, a real estate developer based in NCR, has raised close to Rs 100 crore through loans and two Lease Rental Discounting (LRD) transactions, according to Uddhav Poddar, MD of Bhumika Group.

To fund the construction of phase 2 of its 3.5 lakh sq. ft. retail area in Udaipur mall, the company is in talks to raise another Rs 200 crore in debt. The majority of the first phase has already been leased.

The tenants have begun fitting out the mall, which will be the largest in Udaipur when it opens in August 2022.

“In order to accommodate the need for more space, we have advanced the development of phase 2, which will be similar in size.” “In addition to the retail area, there will be a hotel and an office tower,” Poddar said.

Companies that manage rental assets borrow money from banks by using rental receipts as security for lease rental discounting.

The bank evaluates the company’s long-term rental income in LRD, and the rental income is used to repay the loan.

“At the group level, we would invest another Rs 400 crore in the next phase of our mall in Udaipur.” “We also have a logistics company, and the funds will be used to expand that,” Poddar explained.

In Udaipur and Alwar, the group is negotiating a cooperative development deal with the landowner to build villas and low-rise buildings.

In Udaipur and Alwar, the residential township will cover 15-20 acres.

“A retail project in Jaipur is also on the table.” Tier 2 cities have become the preferred location for retail stores since the pandemic. According to Poddar, many luxury companies are interested in opening outlets in these cities.

Urban Square is one of the few projects in Udaipur where work is proceeding according to plan.

“The mall’s utility is demonstrated by the regular attention it receives from well-known brands.” We’ve discussed positioning before, and this mall will help brands achieve their goals. Poddar added, “The objective is to provide the best lifestyle for city residents while simultaneously appealing to visitors’ worldwide tastes.”

Bhumika Group also has expansion ambitions in Jaipur, Jodhpur, Kota, Bikaner, Ajmer, and Delhi NCR.