Altico Capital invests Rs 130 crore in residential projects

May 30, 2016

Altico closed 2 deals aggregating INR130crs in NCR and Mumbai. Altico is an NBFC headquartered in Mumbai with a focus on senior secured lending to residential projects in the Real Estate sector across Tier-1 cities in India. Altico Capital is backed by strong financial sponsors in Clearwater Capital Partners (a credit and special situations platform based in the Asian region which has invested close to $5bn across 350 companies over the past 15 years), Abu Dhabi Investment Council (one of the largest sovereign wealth funds managing over a $100bn in assets) and Varde Partners (a global alternative investment firm headquartered out of Minneapolis-USA, focused on investing capital and resources across a broad array of sectors including RE, infrastructure and the financial sector).

Altico Capital has closed a Rs 50 Cr transaction with Noida based Lotus Greens group for a residential project named ‘Arena I’, which is part of a larger Sports City development at Sector-79, Noida. The funding proceeds shall be utilized for construction of the project. Through this transaction Altico Capital has strengthened its existing relationship with Lotus Greens. It had in the recent past funded the group for a 300-acre Sports City project in Sector-150, Noida, wherein, it invested Rs 450 cr, along with a co-lender.

Arena I is a mid-segment project, with offerings of 3BHK and 4 BHK apartments and total saleable area of 1.9 mm sqft. It is located in an upcoming residential zone, with projects from various reputed developers in the region. The project location, specifications, significant sales progress and current construction progress were the key drivers for Altico Capital’s investment in the project.

Sanjay Grewal, CEO for Altico Capital, mentioned that we are very pleased to be associated with Lotus Greens who is one of the leading developers in the NCR region, with its promoter, Mr Nirmal Singh having delivered residential and commercial projects totalling more than 14 mm sq ft. It is currently developing multiple projects across Noida and Gurgaon regions. Grewal further added that this is first investment in the NCR region after 15 months. We believe that it will take some time for sales to pick up in NCR and therefore will be very deliberate in putting capital to work in this market. We will look at last mile financing for projects in advanced stages of construction and sales. We will also evaluate and fund Projects wherein credible corporate houses such as Godrej have tied up, under joint development arrangements, with existing land owners and developers to market and construct projects under their corporate brands. 

Altico Capital also closed a Rs. 80 Cr transaction with Mumbai based Shree Sai group for a residential project named ‘The Nest’ In DN Nagar, Andheri West. The project is being developed by Shree Sai in a joint venture with Wadhwa Holdings and is being marketed under the Wadhwa brand name. The proceeds of the funding shall be used by Shree Sai for refinancing the existing lender and for finishing the construction of the project.

Sanjay Grewal, CEO of Altico Capital mentioned that we are pleased to be associated with the Shree Sai group which is focussed on redevelopment projects in the Western suburbs of Mumbai. The group has delivered more than 1.1 million sq. ft. across 18 projects till date and is a leading developer in the DN Nagar area. 

"The Nest" has a free-sale area of 2.5 lac sq. ft. with 1.1 lac sq. ft. being in the share of Shree Sai. It is within a walking distance from the DN Nagar Metro station and is also close to the upmarket area of Juhu. Grewal further added that the project location, product offering and current stage of development were key reasons for Altico’s interest in the project. 

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