Non-banking financial company Altico Capital has provided a credit line worth up to Rs 300 crore (around $46 million) to Hyderabad-based real estate developer Phoenix Group for refinancing its existing lenders and carrying out construction, the company said in a statement.
The capital will be disbursed in tranches across two projects of the developer – Halcyon, a residential project in Jubilee Hills, and a commercial development at Hafeezpet.
"The track record of the group, location of the projects, product offering and stage of construction were key reasons for Altico's investment in the group. While Halcyon is a premium development which has received good sales response from customers at a sought-after location in Jubilee Hills, Trivium, which is a commercial project of around 1 mm sq ft, is located at the growing micro market of Hafeezpet and is pre-leased to a
well-known international BPO firm,” said Sanjay Grewal, chief executive officer, Altico Capital.
Altico will be looking at similar transactions in the commercial real estate segment, including logistics and warehousing, in the next financial year to complement its existing real estate book.
“We are positive on the Hyderabad market given the business friendly environment adopted by the current state government which has led to renewed demand among IT majors for commercial space in Hyderabad. Availability of land, favourable government policies and robust infrastructure are among the reasons which will lead to growth of real estate in Hyderabad,” Grewal said.
This marks second funding for Phoenix Group in a short span of time. Recently, the developer raised funding from Motilal Oswal Real Estate for some of its commercial projects.
Promoted by Suresh Chukkapalli, Phoenix Group claims to have delivered more than 7 million sq feet of residential and commercial space. Recently, it signed up with Embassy Group to develop 7 million sq feet of commercial SEZ in the IT corridor of Gachibowli, Hyderabad, on a joint venture basis.
Recently, Altico Capital also invested in a residential project of Bangalore-based Mantri Group in Hyderabad. Backed by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, Altico has been a consistent lender to the real estate segment and plans to deploy Rs 3,000-4,000 crore on an annual basis into the residential and commercial real estate sectors across Tier-1 cities in India.
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