Altico In­vests 575 crore in 3 Struc­tured Realty Debt Deals


The Economic Times - - Companies - Rav­iTeja.Sharma @times­

New Delhi: NBFC Altico Cap­i­tal has put in .₹ 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 .₹ 600 crore with builders in dif­fer­ent cities over the next three months.

In Mum­bai, it has given .₹ 265 crore to the Mid­c­ity group, which is fo­cused on re­de­vel­op­ment of ex­ist­ing hous­ing so­ci­eties in the city. In Ben­galuru, it has put .₹ 110 crore with lo­cal de­vel­oper Unishire against a port­fo­lio of five projects. In Pune, it has backed Mar­vel Real­tors by putting in .₹ 200 crore for mul­ti­ple projects of the de­vel­oper.

“We will look at in­vest­ing around .₹ 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. Within the next one quar­ter, the NBFC will de­ploy an­other .₹ 600 crore, he said.

Gre­wal said the board of Altico has also ap­proved rais­ing of funds up to .₹ 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 next12 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.

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