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Altico Capital puts in Rs 575 crore in realty projects
Non-banking finance company Altico Capital has put in Rs 575 crore in three structured debt transactions with builders in Mumbai, Pune and Bengaluru . The builders will use the money to refinance existing lenders as well as finish projects that are at an advanced stage of completion.
Altico is also in the process of investing another Rs 600 crore with builders in different cities over the next three months.
In Mumbai, it has given Rs 265 crore to the Midcity group, which is focused on redevelopment of existing housing societies in the city. In Bengaluru, it has put Rs 110 crore with local developer Unishire against a portfolio of five projects while in Pune it has backed Marvel Realtors by putting in Rs 200 crore for multiple projects of the developer.
"We will look at investing around Rs 2,500 crore in tier-I cities this year as good quality builders scout for money to complete existing projects and also to refinance existing lenders and investors," said Sanjay Grewal, chief executive officer of Altico Capital.
He said the board of Altico has also approved raising of funds up to Rs 2,000 crore through a mix of instruments and funding sources including bank lines, commercial paper and NCDs to support the NBFC's growth plans.
He pointed out that Altico has already expanded its investment footprint from Mumbai, NCR and Chennai to Bengaluru and Pune, and will target Hyderabad in the next 12 months.
"Outside of the core strategy, we will look to deploy incremental capital in the commercial real estate and infrastructure sectors should the right opportunities present themselves," he said.
Amit Pachisia, chief credit officer at Altico Capital, said the three transactions that the NBFC has done were appealing from the standpoint of product offering, promoter comfort, project stage and multiple cash flow streams.
"They have been structured to provide a win-win solution to the developer and us by aligning project execution with the prevailing market scenario," Pachisia said.
Vishwajeet Jhavar, CEO Marvel Realtors confirmed the transaction. A spokesman for Unishire declined to comment while email questionnaires sent by ET to Midcity did not elicit any response till press time.
Of these three developers, Altico has invested with Midcity in the past, putting in Rs 85 crore for an existing project in Mumbai.
Pune-based Marvel Realtors had recently acquired a three acre plot in Pune's prime Boat Club Road area from Federal Republic of Germany for Rs 168 crore.
Altico had recently brought on board veteran banker Naina Lal Kidwai as an independent non-executive director. In October last year, the NBFC had invested Rs 725 crore together with Piramal Fund Management in a few projects of Bengaluru-based Century Real Estate. It had also put inRs 450 crore with Mumbai-based Radius Developers.