Altico Capital to invest Rs. 2,500 cr every year in real estate.

Altico Capital, a non-banking finance company (NBFC) promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, is looking to invest about Rs 2,500 crore every year for the next five years in the Indian real estate market.

In the current financial year, Altico has done 11 deals and is looking at another three to four, which will take its investment to around Rs 2,500 crore, said Sanjay Grewal, its chief executive officer.

Altico lends money for mid-income housing projects in Tier-I cities, through structured senior secured debt.

'In the next two to three years, the real estate sector would need a significant amount of funding. Hence, we will focus on the sector. We might look at other appropriate and compelling sectors and strategies,' said Grewal.

Altico's average size is around Rs. 150 crore but it would also like to do deals of Rs. 200 crore to Rs. 300 crore also. 'We would want to have a loan book of $1.5 billion by FY20 and $1 billion by FY18,' he said.

According to him, the company typically lends to developers with attractive projects through multiple strategies that optimise diversification and minimise sales, approval and execution risks.

Last year, Altico Capital and Piramal Fund Management co-invested about Rs. 600 crore, in equal measure, across multiple projects of Bengaluru-based real estate company Century Real Estate Holdings, in one of the largest structured debt transactions.

Altico also lent Rs. 450 crore to a joint venture project of Sumer Group and Radius Developers in Mumbai last year.

BS