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Last updated: 07 Apr, 2016  

Altico Capital Invests Rs 575 Cr Across 3 Real Estate Developers

NewsVoir | 06 Apr, 2016
Altico Capital India Pvt. Ltd closed three transactions aggregating over Rs 575 crores in Mumbai, Pune and Bangalore last week. Altico lends to leading and growing developers in the real estate sector, focusing on mid-income and residential projects in Tier 1 cities. Mr. Sanjay Grewal, the CEO of Altico Capital stated that “Altico continues to focus on its core strategy and looks to build a stable business deploying Rs 2500 Crores in Tier 1 cities each year. We expect to close out similar amounts of disbursements of around 600crs in this upcoming quarter”

 

Altico entered into a multi-project financing arrangement with Marvel Developers, one of the most prominent and reputed developers in Pune. Additionally, it concluded its second transaction with Midcity group, a growing developer having brownfield projects focused on society redevelopments in prominent locations in Mumbai. It also closed its third transaction in Bangalore following its transactions with Century and Skylark earlier this year, financing Unishire against a portfolio of 5 projects.

 

“These transactions appealed to us 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” as stated by Amit Pachisia, the Chief Credit Officer at Altico. Commenting on the state of the Real estate markets, Sanjay Grewal added “While some locations are resilient, some locations are slow at present. With medium to long term fundamentals of the sector intact, these are preferable market conditions for us to underwrite senior secured loans instead of markets in upswing”.

 

Reflecting on the year gone by, Mr. Sanjay Grewal stated that “We now have a net worth exceeding Rs 2000 crores and more importantly the asset quality remains in good health as we have zero NPAs and zero restructured assets”. Going forward, Altico plans to gradually expand within its areas of expertise. Mr. Grewal mentioned “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”. Further the Altico Capital Board approved raising of funds upto INR 2,000 crores through a mix of instruments and funding sources including bank lines, commercial paper and NCDs in order to support the asset growth plans.

 

Altico Capital has recently roped in banking veteran Naina Lal Kidwai as an independent non-executive director on its board. Kidwai stepped down as Chairperson of British lender HSBC India last year after serving the bank for 13 years. Before joining HSBC, Kidwai was Vice-Chairperson and Head, Investment Banking, at JPMorgan Stanley. She would be working closely with the Management and the Shareholders on Altico’s growth and diversification strategies.

 

Altico Capital India Pvt. Ltd is a non-banking financial company (NBFC) backed by Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council. Altico has been a consistent lender to the real estate segment. It has completed 11 transactions in the past 9 months, including some sizeable transactions such as with Mumbai-based Radius Developers, promoted by Sanjay Chhabria and the co invest facility to Century developers along with Piramal.

 
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