Bottom Line: Altico entered into a multi-project financing arrangement with Marvel Developers, Midcity Group, Century, Skylark and Unishire.
Altico Capital India 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 I cities.
Sanjay Grewal, the CEO of Altico Capital said, “Altico continues to focus on its core strategy and looks to build a stable business deploying Rs 2500 Crores in Tier I 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, Pune. Additionally, it concluded its second transaction with Midcity Group 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,” said Amit Pachisia, Chief Credit Officer at Altico.
“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,” Sanjay Grewal added.
Altico have a net worth exceeding Rs 2000 and the company claims to have zero NPAs and zero restructured assets. Going forward, Altico plans to gradually expand within its areas of expertise. This year the company has expanded footprint from Mumbai, NCR and Chennai to Bangalore and Pune.
Outside of the core strategy, Altico plans to deploy incremental capital in the commercial real estate and infrastructure sector. The Altico Capital Board has approved raising of funds up to Rs. 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 is a non-banking financial company (NBFC) backed by Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council. Altico 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.
