Mumbai: Altico Capital, the non-banking finance company, promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners recently deployed INR 1,250 cr across five deals in Hyderabad and Pune. Altico invested INR 500 cr across two deals with Hyderabad based Phoenix group for construction and development of IT SEZ projects, INR 375 cr with Marvel group in Pune for a bouquet of projects, INR 240 cr with Pharande group for development of township project and INR 130 cr with Mumbai based Jatia group for their residential project.
Phoenix group, based in Hyderabad, is a leading developer of commercial projects, having successfully delivered more than 7 mn sq. ft. and currently executing projects around 19 million sq. ft. Altico’s funded project is located in the prime commercial area of Hitec City having presence of global IT and e-commerce giants like Google, Facebook, Amazon, etc. Additionally, Altico funded the construction of another IT-SEZ in Hafeezpet which is pre-leased to a leading global professional services firm. The Phoenix group has continuously demonstrated expertise in leasing commercial spaces to companies like Amazon, IBM, Cognizant, HCL Technologies, Capgemini, etc. as well as selling pre-leased spaces to institutional investors. “Phoenix is an existing partner of Altico Capital. With this transaction, the cumulative amount sanctioned by Altico to the Phoenix group has moved to INR 725 crores” mentioned Sanjay Grewal, CEO, Altico Capital.
Marvel group, a prominent and diversified developer based out of Pune has delivered close to 24 million square feet since 2001. Altico’s fund shall be utilised to develop five under construction projects at various prominent locations in Pune along with two projects in Bangalore. Out of the 5 projects in Pune, three of them are in advanced stages and one is at land stage. A significant portion of these funds shall go towards its under-construction projects, providing them with the much needed impetus post RERA to ensure timely delivery.
Pharande group, where Altico invested INR 240 crore, shall be utilising the said proceeds for development of a new township project located on the Mumbai Pune Expressway for developing plots and villas in the gated community project offering all amenities, having saleable area in excess of 6 million sq. ft. Sanjay Grewal of Altico mentioned that “We are proud to be associated with the Pharande group, promoted by Mr. Anil Pharande, a leading developer in the Pimpri Chinchwad Municipal Corporation (PCMC) area having built over 3 million sq. ft. till date. The Pharande Group is also an existing borrower of Altico. In the past, Altico has sanctioned INR 350 crores towards three of its on-going residential projects in the PCMC area.” Mumbai based Investment Banking Firm Elysium Capital was sole Advisor to the transaction.
Further, Altico invested INR 130crs with the Mumbai based Supreme Holdings & Hospitality promoted by the well known Vinod Jatia family. Grewal added “The Jatia group shall be deploying Altico’s funding for construction of their residential project by name of Belmac Residences in Pune and partly for additional land acquisition by the group.” The group is a well-known business family from Mumbai having more than three decades experience in running successful businesses including Hyatt properties, WIMCO, Bell Ceramics to name a few. The real estate business of the group is now led by two sons of Mr. Vinod Jatia i.e. Prateek and Vidip Jatia.
Recently, Altico had announced that it expects to deploy INR 3000 cr in the balance part of FY18 at the back of the Modi governments forward looking policies which make the RE sector much more robust, organised and transparent. Commenting on its loan book build up, Sanjay Grewal, Chief Executive Officer, Altico Capital mentioned that “These deployments reflect Altico’s continued focus on segments such as affordable and mid-income housing which make up more than 50% of our current portfolio. It further demonstrates our intent to build on our existing strategy of funding developers engaged in completion of their under-construction projects and increasingly focus on commercial / office RE funding opportunities which currently stands at 15% of the portfolio”
Since inception, Altico has deployed more than INR 8,500 cr across 100+ projects covering more than 100 mn sq ft area in 7 cities and continues to maintain strong asset profile. “We continue to maintain healthy asset quality of nil NPA’s for the fifth consecutive year of our RE lending business, even in an environment impacted by the temporary disruptions caused by otherwise stable government policies around demonetisation, RERA and GST, thereby demonstrating our high underwriting standards and superior asset management practices ” added Sanjay Grewal.
Altico existing balance sheet size of close to INR 6,500 cr. stands well diversified across 7 cities with close to 90% of its portfolio being last mile financing. With sufficient liquidity on the backdrop of INR 5,000 cr debt raised during last 18 months, Altico intends to diversify its asset base with a focus on exploring new capital starved segments such as industrial and warehousing space.
Altico Capital recently reported a 48% on-year jump in net profit at Rs 173 crore for the half year ended September 2017. Revenue for the period also increased 80% to Rs 429 crore.
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