Altico to finance Mumbai & NCr projects for Rs. 130 cr

With a focus on senior secured lending to residential projects in the real estate sector across Tier-1 cities in the country, Mumbai-based NBFC, Altico Capital has closed two deals worth Rs 130 crore for residential projects in Mumbai and the NCR.

“We have closed an Rs 50 crore transaction with Noida-based Lotus Greens group for a residential project named ‘Arena I’, which is a part of a larger Sports City development in the city. And In the second deal, we have invested Rs 80 crore in Mumbai-based Shree Sai group for a residential project called ‘The Nest’ being developed in Andheri,” the company said in a statement.

“While the funding for the Arena-I in NCR will be utilised for construction of the project, Shree Sai will use the capital for refinancing the existing lender as well as for completing the construction of the project,” the release added.

“We are looking at last mile financing for projects in advanced stages of construction and sales,” Altico’s Chief Executive, Sanjay Grewal said, adding that the company will also evaluate and fund projects wherein corporate houses like  Godrej have tied up  under joint development arrangements  with existing land owners and developers to market and construct projects under their corporate brands.

Altico Capital to pump in 990 cr in commercial realty this year

besides the $400 million to be deployed in  mid-income  and  affordable housing  segments, Altico Capital  is also looking to pump in $150 million (Rs 990 crore) in commercial  office  properties  and infrastructure sector over 12 – 18 months.

Altico plans to raise Rs 2,000 crore through a mix of instruments and funding sources that include bank lines, commercial paper and non-convertible debentures (NCDs) under the leadership of Dhruv Jain as its chief financial officer, who was earlier with Milestone capital.

“There is a requirement of $15 billion of funds in real estate every year and scope for everybody,” said Sanjay Grewal, chief executive officer at Altico Capital. The NBFC is promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners.

“Altico will concentrate on extending credit to promoters, who have a track record of developing and leasing office space for early stages of development and construction financing as opposed to the late-stage lease rental discounting transactions,” Grewal said.