Altico capital invests 400 Crs. in Noida and Pune projects

New Delhi, December 29^th 2016: Altico Capital has closed a Rs. 225 Cr transaction with NCR based Panchsheel group. The investment has been made against a brown-field residential project being developed by Panchsheel Buildtech Pvt. Ltd. in Greater Noida. The proceeds of the funding shall be predominantly used for completing the construction of the project and shall be disbursed in  tranches.

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

Sanjay Grewal, CEO, Altico Capital mentioned that “Greens II’, the project funded by Altico is an on-going project located at Noida Extension in Greater Noida. In terms of absorption,is the largest micro-market in NCR. Also while the Noida market has seen a slow down 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.

“Greens II’ has an 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 approx. 55% of the units have already been booked. Construction is at advanced stage with more than 50% of the project cost already incurred and few towers close to delivery. Sanjay Grewal further added “Large project layout, affordable ticket price and good connectivity through the Noida – Greater Noida Link Road makes the project an attractive option for home-buyers in NCR.”

Recently, Altico Capital has deployed over a 1000crs in the NCR market having closed transactions with Vatika, SARE Homes and now Panchsheel. Mr. Grewal commented “We will continue to back strong and resourceful Developers who have consistently shown superior execution and delivery track records in their respective micro markets. Our focus will remain on funding mid-income and affordable residential projects with some degree of established marketability.”

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Altico Capital also closed its second transaction with Pune based Pharande group. The current investment of up to INR 175 Cr has been made against ‘Pharande Puneville’, a brown-field residential project being developed at Punawale, just off the Mumbai Pune Highway. The proceeds of the funding shall be used for competing the construction of the project and shall be disbursed in  tranches.  Pharande group one of the leading developers in Pimpri Chinchwad Municipal Corporation (PCMC) and has developed over 3 million sq. ft. in the past. Project Puneville has an aggregate saleable area of 2 million sq. ft. spread across 18 high-rise residential towers and 1530 units. The projects offers 2, 3 and 4 BHK configurations with good set of amenities. The first phase of the project is more than 65% sold and has reached advanced levels of construction.

In July 2016, Altico had sanctioned INR 180 crs against two other under construction projects of the Pharande group, Woodsville and L-Axis, also in the PCMC area. Mumbai based Investment Banking firm, Elysium Capital was the sole advisor to the transaction.