Altico Capital extends Rs 370 crore credit line to Sheth group

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MUMBAI: Global firm Clearwater Capital Partners-backed Altico Capital has agreed to extend a fresh credit line of up to Rs.370 crore to Sheth group, a Mumbai-based realtor with projects in the financial capital’s tony locations and Dubai, signalling renewed interest in real estate activities which are expected to recover from demonetisation impact and pick up pace amid economic optimism.

The loan would be in the form of (nonconvertible) debentures/bonds in two to three tranches, of which Altico has already disbursed nearly half of the sum, market sources familiar with the matter told . The loan has a tenor of about 15 years with interest rates in the range of 17-17.50 per cent.

The developer will be utilising the funds mainly for the construction of a residentialv project—Project Zuri— in Thane with a development potential of 0.6 million sq ft which will be part of a large layout.

At the same location, Sheth Corp has already delivered over 1.5 million sq ft of residential projects and 1million sq ft of retail project ‘Vivana Mall’, which the developer now jointly owns with GIC of Singapore.

“We have always preferred to be associated with developers who have established their execution track record. Sheth Corp is promoted by Ashwin Sheth, who is an established developer in Mumbai with over 12 million sq ft delivered assets across residential, commercial and residential segments,” Sanjay Grewal, CEO of Altico Capital, told .

The project has so far received a robust response to its recent pre-launch sales activity, which establishes the marketability of the product, he added.

The non-banking finance company Altico Capital plans to invest Rs.5,000 crore in residential projects by end of this fiscal across India’s top property markets, including Mumbai, the National Capital Region, Bengaluru and Pune.

Last December, Gurgaon-based Vatika Group had raised Rs.700 crore from Altico Capital in one of the largest real estate debt transactions of the year.

Altico Capital is a non-banking financial company (NBFC), sponsored by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners. It got Rs.2,000 crore from the three in its first year of operations in 2015-16. In 2016, Altico strengthened its capital base by raising Rs.460 crore through redeemable non-convertible debentures from International Finance Corporation (IFC). Currently, its 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 nonexecutive director.