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Global alternative investment Varde Partners has provided senior construction financing on two pre-leased office assets of the Phoenix Group in the Gachibowli financial district of Hyderabad, India.

The $155 million or Rs 1,137 crore facility will be used to refinance and fund to completion over 2.5 million sq ft across the two grade A developments owned by the developer, Varde Partners said in a release.

ET broke the story regarding this transaction on March 22.

Out of the total development, over 1.5 million sq ft has been pre-leased to two multinational companies, reflecting the quality and location of the assets. Construction of both projects is well-advanced, with sub-structure development complete and super-structure phases underway.

Varde believes that 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.

“We see significant opportunity across the Indian office market for both the financing and purchase of assets, in a market that offers potential strong cash-flow visibility, multinational tenants and strong absorption,” said Tim Mooney, Partner and Global Head of Real Estate at Varde Partners. “India is a dramatic example, but emblematic of what we're seeing across the Asia Pacific region, and across the globe. We believe that a real estate cycle is upon us and while not nearly as pronounced as the cycle brought on by the global financial crisis, the opportunity set is significant and growing.”

Varde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, Varde Partners has invested $75 billion since inception and manages more than $14 billion across corporate and traded credit, real estate and mortgages, private equity and direct lending.

Indian real estate sector is expected to continue to witness increased interest from global institutional investors and higher allocation of long-term capital from them given the limited growth opportunities in other developing markets.