Altico Capital invests Rs 400 crore in two residential projects

MUMBAI: Altico Capital has invested Rs 400 crore in two separate projects of Pune-based Pharande Projects and Noida-based Panchsheel Buildtech. Both the projects with a total 7.5 million sq ft saleable area are currently at an advanced stage of construction.

Under these investments, the non-banking financial company (NBFC) has extended debt of Rs 175 crore in Pharande Puneville, at Punawale off Mumbai-Pune Highway and Rs 225 crore in Panchsheel’s Greens II project at Noida Extension in Greater Noida.

The proceeds of the structured debt funding with a tenure of five years will be used for completing the construction of the project and be disbursed in tranches.

Recently, Altico Capital has deployed over Rs 1,000 crore in the NCR market having closed transactions with Vatika, SARE Homes and now Panchsheel.

“In terms of absorption, Greater Noida is the largest micro-market in NCR. Also, while the Noida market has seen a slowdown in sales, Greater Noida, and more specifically Noida Extension within that, has seen uptake in sales as well as a reduction in inventory overhang over the last one year owing to the affordable ticket sizes in this location,” said Sanjay Grewal, CEO, Altico Capital.

Panchsheel Buildtech’s under-construction project Greens II has aggregate saleable area of 5.5 million sq ft, with 4,200 residential apartments across 28 high-rise towers and 200 villas. The project has received all approvals and around 55% of the units have been booked. Construction is at advanced stage with more than half the project cost already incurred and few towers close to delivery.

Altico Capital’s second transaction with Pune-based Pharande Group’s Pharande Puneville project has an aggregate saleable area of 2 million sq ft spread across 18 high-rise residential towers and 1,530 units.

The first phase of the project is more than 65% sold and has reached advanced levels of construction. Pharande group has so far developed over 3 million sq ft in Pimpri-Chinchwad Municipal Corporation.

In July this year, Altico had sanctioned Rs 180 crore against two other under-construction projects of the Pharande group — Woodsville and L-Axis — also in the PCMC. Mumbai-based investment banking firm Elysium Capital was the sole advisor to the transaction.

“We will continue to back strong and resourceful developers who have consistently shown superior execution and delivery track record in their respective micro markets. Our focus will remain on funding mid-income and affordable residential projects with some degree of established marketability,” Grewal said.

Panchsheel group is focused on developing residential projects in Noida, Greater Noida and Ghaziabad and has developed over 6 million sq ft in the past and is currently developing projects with a total area in excess of 9 million sq ft.


Walls N Roof Comment : Altico Capital’s primary business is advancing loans and financing. Altico Capital apart from funding a township in NCR with KKR is planning to invest Rs 5,000 crore in residential real estate projects by March 2017 across India’s top property markets including Mumbai, National Capital Region, Bengaluru and Pune. Recently Altico Capital has invested 700 cr in Gurgaon based Vatika Group.

Pharande Spaces are known for their unique and high quality residential projects, including apartments, row houses etc. Panchsheel Group is a leading developer with expertise in vision residential and commercial complexes.

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