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Altico Capital confirms that it is well on track to cross INR 10,000 crs balance sheet in the near future
Altico Capital, the non-banking finance company of Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners has deployed over INR 5,500 crs across numerous deals over the course of last two quarters, of which deals aggregating INR 3,500 crs were deployed in the quarter ended March 31. While the loan growth in first two quarters of financial year 2017-18 was cautious on account of changing business models of developers, in turn driven by macro events such as RERA, GST and post demonetisation impact; the activity appears to have picked up significantly during the second half of FY18.
“We continue to build on our key focus areas of funding affordable & mid-income housing projects, providing last mile financing and lending to commercial real estate. Of late, the key theme emerging in real estate space is the consolidation amongst real estate developers attributed to introduction of RERA. In this regard, Altico has funded several Tier-I developers to back good projects and facilitate joint development and joint venture agreement with existing project owners ” said Sanjay Grewal, Chief Executive Officer, Altico Capital.
“In doing so, Altico has backed leading developers in its key markets which includes Lodha, Phoenix, Bestech, Century, Casa Grande, along with new emerging class of institutionally backed & professionally run real estate platforms such as Assetz. Pre dominantly our activity was concentrated in Mumbai, Bangalore, Chennai & Hyderabad markets” added Sanjay Grewal. These funding are a reflection of Altico’s robust deal pipeline and its specialization in building and managing a good quality loan book. With current balance sheet size of approximately INR 7,000 crs aided by healthy asset pipeline, Altico stands well on track to cross INR 10,000 crs balance sheet in the near future.
Meanwhile, Altico’s asset quality continues to remain healthy with constant and significant churn in its portfolio. Recent quarters have seen large amount of cash realizations from the existing deals. Besides regular repayments, several of its past deals were partially or fully prepaid during this period by developers such as Ramprastha, Kumar Urban, Nirmal, Pharande, Sheth and Vatika and generated optimal returns. Sanjay Grewal mentioned that “We are very pleased with the choice of our Partners and projects which we have backed. Our capital has provided timely solutions for them and the appropriate risk adjusted returns for Altico, a win-win for both”.