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Altico Capital invests Rs 200 cr in Legacy Group
Altico Capital, a non-banking finance company, promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, has invested Rs 200 crore in Bengaluru-based real estate developer Legacy Group.
With this, the total investment of Altico in Bengaluru becomes Rs 600 crore in the past twelve months.
"It is a portfolio investment that includes several projects spread across central and north Bengaluru, which are at various stages of execution, including a few nearing completion, providing multiple and diversified sources of cash flows for debt servicing," the company said.
The funding is proposed to be used by the developer towards refinancing of some existing lenders and for construction funding across projects. Altico Capital in January had announced it is looking to invest Rs 2,500 crore every year for the next five years in the Indian real estate market.
It had earlier invested in Century and Unishire group in Bengaluru market.
"We are extremely delighted to partner with the Legacy Group which is a well-known brand in the Bengaluru real estate market known for its superior design and product quality. The product offering, mix of late stage and under construction projects located at prominent and well established micro locations in Bengaluru apart from Legacy’s premium quality and demonstrated timely execution track record were key reasons for Altico's investment with the Group" said Sanjay Grewal, CEO, Altico Capital.
Bengaluru market has recently seen a string of investments from private equity players as well as non-banking finance companies including Piramal Capital, KKR, Apollo, Kotak Realty etc. in both residential as well as commercial projects.
"Despite some slowdown in sales as well as regulatory hurdles in recent past, we remain bullish on Bengaluru market due to continued growth in commercial absorption coupled with good demand for mid income products which are competitively priced, all of which indicate towards continued robustness of this market. We are evaluating multiple opportunities across residential and commercial office sector and plan to deploy another Rs. 750 - 1,000 crores in Bengaluru during this financial year", said Sanjay Grewal.
Promoted by B H Krishnamurthy, Sanjay Shenoy and Rakesh Prabhu, the group has delivered more than 1 million sq. feet of residential space since 2008.