Varde extends $155m for two Phoenix office projects

Global alternative investment firm Varde Partners is extending a $155 million senior financing facility for two office projects being developed by Phoenix Group in the Financial District here.

The $155 million will be used to refinance and fund completion of over 2.5 million sq ft across the two Grade A developments owned by Phoenix Group. Over 1.5 million sq ft has been already pre-let to two multinational companies.

Stating that the pre-lease is a reflection of the quality and location of the assets, a release from Varde said construction of both projects is well-advanced, with sub-structure development complete and super-structure phases underway.

Varde Partners sees significant opportunity across the Indian office market for both financing and purchase of assets. The market offers potential strong cash-flow visibility, multinational tenants and strong absorption, said Tim Mooney, Partner and Global Head of Real Estate.

Hyderabad is a recognised global tech hub with its Financial District home to a large number of multinational tech, financial services and professional services firms. It is one of the fastest growing metropolitan cities in the country and one of the strongest markets for office absorption. The release said Varde believes India’s real estate market is experiencing a significant imbalance in the supply and demand of capital, leading to many businesses with robust balance sheets seeking alternative sources of capital.

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