Altico Capital has closed a Rs 300 cr transaction with Pune based Kumar Urban Ltd (KUL) for a residential township named ‘KUL Ecoloch’, located near Hinjewadi, Pune. The funding proceeds shall be utilized towards refinancing the existing lenders and construction of the township.
KUL Ecoloch is a mid-segment project, with offerings of 1BHK, 2BHK and 3 BHK apartments and total saleable area of more than 3 mm sqft. The township is a brownfield project with Phase 1 substantially delivered while Phase 2 and 3 currently under construction. It is located on the proposed link road between Hinjewadi and Baner and is well connected with these established markets.
Sanjay Grewal, CEO of Altico Capital mentioned that “The project location, specifications, sales and construction progress, promoter resourcefulness as well as significant track record of the KUL Group in the Pune market were the key drivers for Altico Capital’s investment in the project.”
KUL Group is one of the leading developers in Pune, having delivered residential and commercial projects totaling more than 8 mm sq ft. It is currently developing multiple projects in Mumbai and Pune markets with launched saleable area totaling more than 6 mm sq ft. Further, the group has funding relationships with various public sector and private banks, private equity investors and other financial institutions for developing its ongoing projects.
On the Pune market, Mr. Grewal commented that “Through this transaction, Altico Capital has further strengthened its presence in the Pune market. In the last couple of months Altico has concluded several transactions in Pune including the 240 cr investment with Marvel Realtors for the construction of a portfolio of projects followed by a Rs.180 crs transaction with Pharande for their L-Axis and Woods ville project on Spine Road.”He further added that “The overall exposure to this key market should cross 1,000crs soon with our main focus remaining on providing capital to leading developers focused on mid-income and affordable residential projects in established locations.” The Pune market for the budget product remains stable driven by end users with approx.15,000 – 20,000 units being sold in the last 6 months and inventory levels coming down sharply due to new launches being deferred by developers given their focus on completing existing projects.”
Altico Capital, an NBFC, sponsored by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, plans to deploy 3,000 – 4,000 crs on an annual basis into the residential and commercial real estate sectors across Tier-1 cities in India.
Kumar Urban Raises 300 Crs from Altico Capital
