Mumbai-based privately held developer Nirmal Group has raised Rs 500 crore ($75 million) from non-banking financial company (NBFC) Altico Capital India Pvt. Ltd in one of the largest financing transactions in the residential real estate segment in recent months.
Nirmal Group will use the funds to give an exit to existing lenders and finish construction of three residential projects in Mumbai’s suburbs, the lender said in a statement. These projects include three condominium towers in Mulund and an early-stage project near Thane.
“The Mulund market, already the largest residential micro-market of metropolitan Mumbai, is poised to be one of the most vibrant markets with good physical and social infrastructure,” said Sanjay Grewal, chief operating officer, Altico. He added that Altico intends to invest in a mix of advanced brownfield projects and early-stage projects.
The statement said that projects have a total saleable area of about 2 million square feet. Of this, about 1.25 million square feet is in advanced stages of construction and the remaining is in early stages.
Meanwhile, this is the first time Altico Capital has invested in Nirmal Group’s projects. Nirmal Group, which is largely present in the micro markets of Mumbai, claims to have developed more than 5 million sq ft area and has close to 16 million sq ft under construction.
Altico Capital has completed several such platform deals in the past few months. Earlier this month, it signed a Rs 300 crore deal with Pune-based developer Kumar Builders. Last month, it inked a Rs 200 crore deal with Legacy Group in Bengaluru.
Previously, it agreed to invest Rs 240 crore for construction of a portfolio of Marvel Realtors’ projects and a Rs 180 crore transaction with Pune’s Pharande Group. In Mumbai, Altico recently completed a Rs 450 crore financing deal for Radius Developer for a project being constructed in Mazagaon.
Garewal said the market remains stable across mid to upper-mid segments in established locations. “Altico’s portfolio has an overall allocation of about 35% to Mumbai and we plan to deploy an incremental Rs 1,000 -1500 crore in this market in the next couple of months with other such leading groups,” he said.
Like this report? Sign up for our daily newsletter to get our top reports.