Altico in­vests ₹570 crore in Ben­galuru realty projects

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­[email protected]

Altico Cap­i­tal In­dia Ltd, a real es­tate- fo­cused non-bank­ing fi­nan­cial com­pany (NBFC), has in­vested ₹570 crore in the Ben­galuru res­i­den­tial mar­ket. It has backed projects of As­setz Prop­erty Group and a plot­ted de­vel­op­ment project of Cen­tury Real Es­tate Hold­ings Pvt. Ltd. The NBFC has sanc­tioned ₹450 crore in debt fi­nanc­ing across As­setz’s five projects, un­der­writ­ing a saleable area of 6.3 mil­lion sq ft.

With these trans­ac­tions, Altico has in­vested around ₹1,000 crore in Ben­galuru’s prop­erty mar­ket. It plans to ex­e­cute a cou­ple of more deals by March 2019. Cen­tury’s man­ag­ing di­rec­tor Ravin­dra Pai said since the plot­ted project was launched in Septem­ber, it has al­ready sold 120 of the 450 plots. “The debt will pri­mar­ily be used for land ac­qui­si­tion pay­ment.”

Mint could not im­me­di­ately reach out to any As­setz spokesper­son for com­ments.

The real es­tate projects are in the mid-in­come res­i­den­tial seg­ment across north and north­east parts of Ben­galuru, be­sides projects in the White­field neigh­bour­hood. It also mark’s Altico’s sec­ond in­vest­ment in Cen­tury Real Es­tate, af­ter co-in­vest­ing ₹765 crore with Pi­ra­mal Cap­i­tal and Hous­ing Fi­nance Ltd in a port­fo­lio of projects in 2015.

The new in­vest­ment is in a 30-acre plot­ted de­vel­op­ment, Cen­tury Greens, in north Ben­galuru. The plots are be­ing sold at ₹25-40 lakh. “Mid-in­come af­ford­able hous­ing is mov­ing­fast in the Ben­galuru mar­ket, along with projects which are closer to com­ple­tion and­hasac­quired oc­cupa- tion cer­tifi­cates (OC). This is the seg­ment that fits into our phi­los­o­phy of in­vest­ing in mid-mar­ket and af­ford­able projects as well,” said San­jay Gre­wal, chief ex­ec­u­tive of­fi­cer, Altico Cap­i­tal.

Ac­cord­ing to Gre­wal, the firm plans to broad-base its in­vest­ment port­fo­lio in the city. “We want to in­vest in the of­fice and lo­gis­tics sec­tor, and are on our way to in­vest­ment in the ed­u­ca­tion sec­tor in the city as well.” Ben­galuru has been one of the best per­form­ing prop­erty mar­kets de­spite the pro­longed slow­down in the real es­tate sec­tor.

Altico is backed by Fiera Cap­i­tal (for­merly Clear­wa­ter Cap­i­tal Part­ners Llc), Abu Dhabi In­vest­ment Coun­cil and Varde Part­ners Inc. Re­cently, many NBFCs have lost sig­nif­i­cant mar­ket value on grow­ing con­cerns around as­set- li­a­bil­ity mis- matches andtight­en­ing liq­uid­ity in the short-term mon­ey­mar­ket, af­ter a se­ries of de­faults by In­fra­struc­ture Leas­ing and Fi­nan­cial Ser­vices Ltd (IL&FS) be­came pub­lic. How­ever, Altico has main­tained that it is well-cap­i­tal­ized with ad­e­quate cash and liq­uid­ity, and most of its debt is long term. As the res­i­den­tial mar­ket nor­mal­izes, it aims to reach its tar­get of ₹9,000 crore in as­sets un­der man­age­ment in FY19. Altico re­cently said that it had en­tered the ware­hous­ing and lo­gis­tics sec­tor by in­vest­ing ₹ 650 crore in Re­nais­sance Group’s on­go­ing in­dus­trial and ware­hous­ing park in Bhi­wandi near Mum­bai.

The NBFC has el­e­vated for­mer HSBC In­dia head Naina Lal Kid­wai as chair­man of the firm. She has been an in­de­pen­dent di­rec­tor in it since 2016.


The new in­vest­ment is in a 30­acre plot­ted de­vel­op­ment

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