Mumbai-based listed real estate developer Sunteck Realty Ltd is expanding its annuity income business of its commercial portfolio and has signed a long-term lease agreement with Bennett, Coleman & Co Ltd for its second premium commercial building at BKC Junction, Sunteck Icon, the company said in a regulatory filing.

“This is to inform you that Sunteck Realty Limited (‘the Company’) expands its annuity income business; Gives its second building at BKC junction, Sunteck Icon to Bennett, Coleman & Co Ltd. for a long term tenure. The aforesaid Agreement is not a related party transaction and is being entered with a third party with no conflict of interest arising out of the aforesaid agreement and no nominee is on the board of Directors of the Company,” the company said in a regulatory filing.

The built‐up area of Sunteck Icon is approximately 2 lakh square feet with an approximate rental of Rs. 300 per sq. ft. per month on carpet area basis. This will allow the company to generate a revenue of close to ₹2,000 crore over the tenure of 29 years, the company said.

“Building on the momentum of our 2023 success with the leasing of BKC51 to Upgrad, it is with great pleasure that we announce the successful deal of Sunteck Icon our premium, world‐class commercial building with Bennett, Coleman & Co Ltd. The combined performance of the two rental assets is projected to yield an average return of 30% on the invested capital,” said Kamal Khetan, chairman, Sunteck Realty Limited.

“We envision more such developments in city‐centric prime locations, and anticipate more such marquee transactions, thereby further solidifying our position as a leading developer in the real estate segment,” he said.

“Strengthening our commercial portfolio, going forward we will be strategically positioning ourselves in the two key business districts of the Mumbai‐ Bandra‐Kurla Complex (BKC) and Oshiwara District Centre (ODC), Goregaon (West),” he added.

Sunteck Realty has a diversified pipeline of projects, encompassing over 50 million square feet spread across 32 projects.