Altico Capital, a non-banking finance company, promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, recently deployed Rs 1,250 crores across five deals in Hyderabad and Pune. This includes Rs 500 crores across two deals with Hyderabad-based Phoenix Group for the construction and development of IT SEZ projects, Rs 375 crores with Marvel Group in Pune for a bouquet of projects, Rs 240 crores with Pharande Group for the development of a township project and Rs 130 crores with Mumbai-based Jatia Group for their residential project.
The Phoenix Group’s project, which Altico will fund, is located in the prime commercial area of Hitec City. “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 crores,” mentioned Sanjay Grewal, CEO, Altico Capital. Altico’s fund for the Marvel Group, shall be utilised to develop five under-construction projects at various prominent locations in Pune along with two projects in Bengaluru.
Pharande Group, where Altico has invested Rs 240 crores, shall be utilising the said proceeds for the development of a new township project located on the Mumbai-Pune Expressway, for developing plots and villas in a gated community project, having saleable area in excess of six million sq ft. Altico’s investment of Rs 130 crores with Mumbai-based Supreme Holdings & Hospitality, shall be deployed for the construction of their residential project, by the name of Belmac Residences in Pune and partly for additional land acquisition by the group.
Recently, Altico had announced that it expects to deploy Rs 3,000 crores in the balance part of FY18. Commenting on its loan book build up, Grewal said: “These deployments reflect Altico’s continued focus on segments such as affordable and mid-income housing, which make up more than 50 per cent 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 real estate funding opportunities, which currently stands at 15 per cent of the portfolio.”
Since its inception, Altico has deployed more than Rs 8,500 crores across over 100 projects, covering more than 100 million sq ft area in seven cities. “We continue to maintain healthy asset quality of nil NPAs, 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 Grewal.
Altico’s existing balance sheet size of close to Rs 6,500 crores is diversified across seven cities, with close to 90 per cent of its portfolio being last-mile financing.