December 22, 2017

MUMBAI: Altico Capital, the non-banking finance company, promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, has invested over Rs 1,250 crore across five deals in Pune and Hyderabad. These investments are in line with the NBFC's plan to deploy Rs 3,000 crore in the second half of the current financial year, said a top company official.

Of these markets, Altico has invested Rs 500 crore through two deals with Hyderabad-based Phoenix Group for construction and development of Information Technology Special Economic Zone (IT SEZ) projects.

In Pune, it has invested Rs 375 crore with Marvel Group for a bouquet of projects, Rs 240 crore with Pharande Group for development of a township project, and Rs 130 crore with Mumbai-based Jatia Group for their residential project in Pune.

These deployments reflect Alticos continued focus on segments such as affordable and mid-income housing that makes up more than half of our current portfolio, Sanjay Grewal, Chief Executive Officer, Altico Capital, told ET. 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 and office real estate funding opportunities which currently stand at 15% of the portfolio.

Recently, Grewal had said that Altico expects to deploy Rs 3000 crore for the of 2017-18 in the backdrop of the governments forward-looking policies that make the real estate sector more robust, organized and transparent.

Of the investments made in Hyderabad market, the Altico-funded first project of commercial developer Phoenix Group is located in Hitec City that has presence of global IT and ecommerce giants such as 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.

Refrigerators and ACs together contribute around 75 per cent of the companys total revenue at present.

"Phoenix is an existing partner of Altico Capital. With this transaction, the cumulative amount sanctioned by Altico to the Phoenix Group has moved to Rs 725 crore," said Grewal.

Alticos investment in Marvel Groups portfolio will be utilised to develop five under construction projects at various 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 will go towards its under-construction projects, providing them with the needed impetus post RERA to ensure timely delivery.

The Pharande Group, where Altico had invested Rs 240 crore, shall be using the said proceeds to develop a new township project located on the Mumbai-Pune Expressway, and will have plots and villas in the gated community project with saleable area in excess of 6 million sq. ft. The developer is also an existing borrower of Altico. In the past, Altico had sanctioned Rs 350 crore towards three of its ongoing residential projects in the Pimpri-Chinchwad Municipal Corporation (PCMC) area.

The Pharande Group had borrowed from Altico earlier too. In the past, Altico had sanctioned Rs 350 crore towards three of its ongoing residential projects in the Pimpri Chinchwad Municipal Corporation (PCMC) area.

Since inception, Altico has deployed more than Rs 8,500 crore across over 100 projects covering more than 100 million sq ft area in seven cities. 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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Source: realty.economictimes.indiatimes.com