Altico Invests 575 crore in 3 Structured Realty Debt Deals
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.