DBS Bank India Sanctions ₹520 Crore Construction Finance for K Raheja Corp's LEED Platinum Commercial Tower in Balewadi, Pune
DBS Bank India Funds K Raheja Corp's New Grade A Tower in Balewadi
DBS Bank India announced the extension of a construction finance facility of INR 5.2 billion to a special purpose vehicle (SPV) of K Raheja Corp for the development of a LEED Platinum pre-certified commercial tower in Balewadi, Pune, spanning approximately 1.1 million square feet. The announcement came on 10 August 2026.
Project Scope and Sustainability
The tower spans 1.1 million square feet (msf) of Grade A office space. The development is being built to globally recognised green building standards, reflecting a focus on sustainability across both construction and long-term operations. LEED/IGBC-certified buildings command rental premiums of 8-15% over non-certified properties.
Located in one of Pune's fastest-growing business districts, the project is designed to address the growing need for high-quality, future-ready office spaces.
Strategic Context: Balewadi's Emergence as Office Hub
Balewadi, Baner and Hinjewadi comprise Pune's Western Belt, positioned as prime location for tech GCCs, with massive talent pools, and direct transit via the Mumbai-Pune Expressway. The western corridor has seen sustained commercial growth, underpinned by proximity to IT parks and transportation infrastructure.
In the first half of 2026 (H1 2026), Pune recorded office space absorption of 6.4 million square feet (msf), up 56 per cent year-on-year (YoY). Pune recorded the highest half-yearly leasing volume in the last decade. The city emerged as India's second-largest office market after Bengaluru.
Demand Drivers: GCC Expansion and Workplace Quality
Global Capability Centres (GCCs) contributed 52% of Pune office leasing volume in Q2 2026. India's commercial real estate sector continues to witness strong momentum, driven by business expansion, increasing demand from global capability centres, and a growing emphasis on quality, sustainability and operational efficiency.
In 2026, 80-90% of new office supply is expected to be green certified, pushing overall green penetration to 70-75% nationally.
K Raheja Corp's Commercial Legacy
K Raheja Corp is one of India's leading real estate conglomerates and a success story spanning over four decades, having pioneered the concepts of self-contained townships and branded commercial business districts in the country. Its commercial real estate business develops fully integrated Grade A business parks and premium independent office assets that serve as workplaces of choice for leading domestic and global enterprises - a part of which is listed as Mindspace Business Parks.
In August 2020, a part of K Raheja Corp's commercial portfolio was carved into a listed entity, Mindspace Business Parks REIT. The REIT owns a quality office portfolio in four key office markets of India — Mumbai Region, Hyderabad, Pune, and Chennai.
K Raheja Corp has been an early advocate for green buildings and sustainable practices. Projects such as Raheja Vistas Premiere have received awards for their sustainability initiatives, including the use of rainwater harvesting, energy-efficient designs, and creating large green spaces.
DBS Bank's Sustainability Focus
Santanu Mitra, Head of Large Corporate Banking, DBS Bank India, said, "Real estate and infrastructure is a key focus for DBS Bank India, and we have supported several innovative, sustainable projects being developed across the country." The bank has structured similar green loan facilities for other major real estate developers, aligning capital deployment with ESG objectives.