Altico Capital India Ltd has invested Rs 570 crore in the Bengaluru residential market. a real estate-focused non-banking financial company (NBFC), it has been the backbone of projects of Assetz Property Group and also a plotted project of Century Real Estate Holdings Pvt. Ltd. The NBFC has approved Rs 450 crore in debt across five projects by Assetz’s, supporting a saleable area of 6.3 million sq ft.
A total of Rs 1,000 crore has been invested by Altico in the Bengaluru property market. The company plans to further a couple of more deals by March 2019.
Ravindra Pai, MD, Century said since the plotted project was launched in September, 120 of the 450 plots have already been sold. “The debt will primarily be used for land acquisition payment.”
The real estate projects in the North and North East parts of Bengaluru, lie in the mid-income segment, besides the projects in the Whitefield neighbourhood. It also is Altico’s second investment in Century Real Estate, after becoming a co-investor at Rs 765 crore with Piramal Capital and Housing Finance Ltd, in a portfolio of projects in 2015.
The investment is a plotted development spread in 30 acres. It is called Century Greens and is situated in north Bengaluru.The plots range from Rs 25 – 40 lakh.
Sanjay Grewal, chief executive officer, Altico Capital, said, “Mid-income affordable housing is moving fast in the Bengaluru market, along with projects which are closer to completion and has acquired occupation certificates (OC). This is the segment that fits into our philosophy of investing in mid-market and affordable projects as well.”
As per Grewal, the firm is planning to increase its investment portfolio in the city. “We want to invest in the office and logistics sector, and are on our way to investment in the education sector in the city as well.” Bengaluru real estate market has been the best performer when compared to other markets in India, despite the slowdown.
Altico is backed by Fiera Capital (formerly Clearwater Capital Partners Llc), Abu Dhabi Investment Council and Varde Partners Inc.
After a series of defaults by Infrastructure Leasing and Financial Services Ltd (IL&FS) became public, many NBFCs have lost significant market value on growing concerns around asset-liability mismatches and tightening liquidity in the short-term money market.
However, Altico has always said that it is well-capitalized with sufficient cash and liquidity, and most of its debt is long term. With the normalization of the real estate market, it aims to reach the target Rs 9,000 crore in assets under management in FY19.
Altico recently announced that it had ventured into the warehousing and logistics sector by investing Rs 650 crore in Renaissance Group’s ongoing industrial and warehousing park in Bhiwandi, near Mumbai.
The NBFC has promoted former HSBC India head Naina Lal Kidwai as chairman of the company. She has been serving as an independent director in it since 2016.