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Altico Captial infuses Rs.180 crore in Sheth Corps's Thane Project
Clearwater Capital-backed non-banking financial company (NBFC) Altico Capital has infused Rs 180 crore in Mumbai-based realty developer Sheth Corp’s residential project in Thane, said a top company official.
The developer will be utilizing the funds raised predominantly for the construction of a residential project ‘Project Zuri’ in Thane. The project has a development potential of 0.6 million sq ft and is part of a larger layout being developed by Sheth Corp.
At the same location, Sheth Corp has already delivered over 1.5 million sq ft of residential projects and 1 million sq ft of retail project ‘Vivana Mall’ that is now owned by the developer jointly with GIC of Singapore.
Altico Capital is a non-banking financial company (NBFC), sponsored 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 4,000-5,000 crore on an annual basis into the residential and commercial real estate sectors across Tier-1 cities in India.
The company’s first full year of operations was 2015-16, after its three partners brought in equity capital of Rs 2,000 crore. In 2016, Altico Capital strengthened its capital base by raising Rs 460 crore through redeemable non-convertible debentures from International Finance Corporation (IFC).
Currently, Altico Capital’s net worth stands at about Rs 2,200 crore, among the largest in foreign-owned and controlled NBFCs in India. Recently, the company appointed former HSBC India chairperson Naina Lal Kidwai as an independent non-executive director.
Real estate developers are increasingly turning to private equity investors and non-banking finance companies to refinance their existing high-cost debt due to sluggish home sales in the last couple of years and with banks turning cautious on lending to the sector.