Non-banking financial company Altico Capital India has invested Rs575 crore in three real estate developers across Mumbai, Pune and Bangalore. Separately, Altico Capital has also received board approval to raise funds upto Rs2,000 crores through a mix of funding including bank lines, commercial paper and NCDs.
Altico, which is backed by private equity firms Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council, lends to growing developers focusing on mid-income and residential projects in Tier-I cities.
The deals include a multi-project financing arrangement with Pune developer Marvel Developers, a second funding transaction with developer of brownfield projects focused on redevelopment of housing societies in Mumbai, Midcity group, and a third financing arrangement in Bangalore following its transactions with Century and Skylark earlier this year, financing Unishire against a portfolio of 5 projects.
''Altico continues to build a stable business deploying Rs 2,500 crore in Tier-I cities each year. We expect to close out similar amounts of disbursements of around Rs600 crore in this upcoming quarter,'' said Sanjay Grewal, CEO, Altico Capital.
''This year we expanded our footprint from Mumbai, NCR and Chennai to Bangalore and Pune. Next year we may add another city to our target markets. Outside of the core strategy, we will look to deploy incremental capital in the commercial RE and infrastructure sectors should the right opportunities present themselves,'' he added.
For providing financing Altico looks product offerings from real estate developers, promoter comfort, project stage and multiple cash flow streams.
"These have been structured to provide a win-win solution to the developer and us by aligning project execution with the prevailing market scenario,'' said Amit Pachisia, chief credit Officer at Altico.
Altico Capital recently roped in former HCBC India head Naina Lal Kidwai as an independent non-executive director on its board.
Kidwai had stepped down as chairperson HSBC India last year after serving the bank for 13 years.