Kirloskar Industries’ real estate division, Avante Spaces, has secured a ₹1,150 crore term loan from ICICI Bank to support a Grade A office project in Pune’s Kothrud area, showcasing lenders’ ongoing interest in well-established urban developments.
The funding for this 1.9 million sq. ft office project is organized in two tranches: ₹1,050 crore and ₹100 crore, with a repayment schedule of 44 months at an annual interest rate of 8%.
The company has placed a mortgage on its land and all current and future constructions, securing the loan with approximately 7.25 acres of land across Plots A, C, and D in Kothrud.
Axis Trustee Services is acting as the security trustee for this transaction, which was documented in January, according to CRE Matrix, a real estate data analytics platform.
This transaction highlights a broader trend of institutional lenders selectively financing commercial real estate projects characterized by strong sponsorship, clear execution visibility, and advantageous locations.
Such financial arrangements give lenders access to relatively stable real estate assets, particularly Grade A office spaces that continue to attract corporations, tech firms, and global capability centres. The structured nature of these loans, coupled with defined repayment schedules and solid collateral, helps mitigate project risks.
Neither Kirloskar Industries nor ICICI Bank responded to RealtyDailyNews’s inquiries by press time on Monday.
Kothrud, which has traditionally been a residential area, is increasingly becoming an office hub due to infrastructure enhancements and the rising demand for decentralized workspaces.
This deal reflects a measured increase in financing activity within the commercial real estate sector, driven by strong occupier demand and a consistent pipeline of office projects in major urban centres.
