Altico Capital invests $195 mn across realty projects in Hyderabad, Pune

Non-banking financial company Altico Capital has deployed Rs 1,250 crore (nearly $195 million) across five real estate projects in Hyderabad and Pune, it said in a statement.

Altico Capital invested Rs 500 crore across two deals with Hyderabad-based developer Phoenix group for construction and development of IT SEZ projects, Rs 375 crore with Marvel group in Pune for a bouquet of projects, Rs 240 crore with Pharande group for development of township project and Rs 130 crore with a Mumbai-based group for a residential project.

"Phoenix is an existing partner of Altico Capital. With this transaction, the cumulative amount sanctioned by Altico to the Phoenix group has touched Rs 725 crore," said Sanjay Grewal, chief executive officer of Altico Capital.

Phoenix Group has business interests across the real estate, automobile, power and mining sectors. It develops residential, commercial and retail properties as well as special economic zones.

In March, Altico Capital provided a credit line worth up to Rs 300 crore to Phoenix Group for refinancing its existing lenders and carrying out construction work. Phoenix Group also received about Rs 80 crore from Motilal Oswal Real Estate for its three commercial projects.

Marvel Group will use Altico’s funding to develop five under-construction projects in Pune along with two projects in Bengaluru. Pharande Group will use the money to develop a township project located on the Mumbai-Pune Expressway.

“The Pharande Group is also an existing borrower of Altico. In the past, Altico has sanctioned Rs 350 crore towards three of its on-going residential projects in the Pimpri Chinchwad Municipal Corporation area,” said Grewal.

Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners are among key financial sponsors to Altico Capital.

The company posted total revenues of Rs 588.2 crore and a net profit of Rs 270.8 crore in the year through 31 March 2017.

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