Non-banking finance company Altico Capital has entered into a portfolio based funding with Bangalore-based real estate developer Legacy Group. Portfolio includes several projects spread across Central and North Bangalore which are at various stages of execution including few that are at late stage nearing completion, providing multiple and diversified sources of cash flows for debt servicing. The funding which shall be made in tranches is proposed to be used by the developer towards refinancing of some existing lenders and for construction funding across projects. The Group has delivered over a million square feet with another 4-5mn sqft under various stages of execution.
Altico has in the past concluded similar deals against project portfolios, noticeable among them are transactions with Century and Unishire group in Bangalore market over last 12 months.
“We are extremely delighted to partner with the Legacy Group which is a well-known brand in the Bangalore real estate market known for its superior design and product quality. The product offering, mix of late stage and under construction projects located at prominent and well established micro locations in Bangalore apart from Legacy’s premium quality and demonstrated timely execution track record were key reasons for Altico’s investment with the Group.” said Sanjay Grewal, CEO, Altico Capital.
Bangalore market has recently seen a string of investments from private equity players as well as non-banking finance companies including Piramal Capital, KKR, Apollo, Kotak Realty etc. in both residential as well as commercial projects.
“Despite some slowdown in sales as well as regulatory hurdles in recent past, we remain bullish on Bangalore market due to continued growth in commercial absorption coupled with good demand for mid income products which are competitively priced, all of which indicate towards continued robustness of this market. We are evaluating multiple opportunities across residential and commercial office sector and plan to deploy another Rs. 750 – 1,000 crores in Bangalore during this financial year” said Sanjay Grewal.
Legacy Group, promoted by Mr. B H Krishnamurthy, Mr. Sanjay Shenoy and Mr. Rakesh Prabhu, is a prominent developer in Bangalore, having delivered more than 1 million sq. feet of residential space since 2008. The Group is well known for design and construction quality of their projects and are more prominently focused in Central and North Bangalore markets.
Altico Capital India Pvt. Ltd is a non-banking financial company (NBFC) backed by Clearwater Capital Partners, Varde Partners and Abu Dhabi Investment Council. Altico has been a consistent lender to the real estate segment. It has completed several transactions such as with Mumbai-based Radius Developers, promoted by Sanjay Chhabria, co invest facility to Century developers along with Piramal and NCR based Lotus Greens amongst others.