Kirloskar Industries’ realty arm raises Rs 1,150 cr term loan from ICICI Bank

Kirloskar Industries’ real estate development arm Avante Spaces has raised a term loan of Rs 1,150 crore from ICICI Bank to fund a Grade A commercial development in Pune’s Kothrud suburb, signalling continued lender appetite for projects in established urban locations.

The financing for a 1.9 million-sq-ft office project is structured in two tranches of Rs 1,050 crore and Rs 100 crore under a defined repayment schedule of 44 months, and carries an interest rate of 8% per annum.

The company has created a mortgage over its land parcels and all present and future constructions. The collateral covers a land area of about 7.25 acres across Plots A, C and D located in Kothrud.


Axis Trustee Services is acting as the security trustee for the transaction. The security interest for the loan was created in January, showed documents accessed through CRE Matric, a realty data analytics platform.

The transaction reflects a broader trend of institutional lenders selectively backing commercial real estate projects with strong sponsorship, clear execution visibility and location advantages.

For lenders, such exposure provides access to relatively stable real estate assets, especially Grade A office spaces that continue to attract corporates, technology firms and global capability centres. The structured nature of such loans, along with defined repayment timelines and hard asset backing, helps mitigate project risks.

Kirloskar Industries and ICICI Bank did not respond to ET’s emailed queries until press time on Monday.

Kothrud micro-market, traditionally a residential hub, is increasingly emerging as an office destination, driven by infrastructure improvements and demand for decentralised workspaces.

The deal comes amid a calibrated pickup in financing activity in the commercial real estate segment, supported by improving occupier demand and a steady pipeline of office developments across key urban centres.