Pune, March 2026 – Kirloskar Industries’ real estate subsidiary Avante Spaces has secured a ₹1,150 crore term loan to fund construction of its second commercial development in Pune, a 1.6 million sq ft Grade-A office project in the city’s Kothrud corridor, targeted for delivery by 2027-28. The financing marks a significant commitment by the Kirloskar Group to its real estate expansion strategy, with the group having declared an intent to develop approximately 100 acres of land it owns across Pune over the next decade, channelling output through the Avante brand.
The First Project and What It Signals
Avante Spaces completed its first Pune commercial development, One Avante, and used that project to establish the brand’s positioning in the city’s Grade-A market before committing to the much larger second project. The decision to finance the Kothrud development entirely through term debt, rather than developer equity or pre-leasing arrangements, reflects both the group’s confidence in Pune’s office absorption capacity and the relative ease with which established industrial conglomerates with strong balance sheets can access real estate construction finance at the current market.
Kirloskar’s Land Bank and the Decade-Long Pipeline
Executive Chairman Rahul Kirloskar has publicly stated that the group owns approximately 100 acres across Pune, the majority of which is intended for phased real estate development over a ten-year horizon. The Kothrud project represents the second phase of that pipeline and, at 1.6 million sq ft, is significantly larger than One Avante, signalling the group’s intent to scale into a meaningful commercial real estate operator rather than maintain a token presence in the sector.
Location Context: Kothrud’s Position in Pune’s Office Market
Kothrud is one of Pune’s most established western residential and commercial suburbs, with strong road connectivity to the Hinjewadi IT cluster via the Mumbai-Bangalore Expressway access points and proximity to the Pune-Mumbai expressway. Grade-A commercial supply in the Kothrud-Karve Road corridor has historically lagged demand from mid-sized technology firms, professional services companies, and BFSI occupiers who prefer western Pune but require larger, better-specified floorplates than the corridor’s older stock can offer.
