Altico commits $15m to Mumbai real estate

The firm is planning to expand its business outside residential development to construction financing and commercial projects.

Altico Capital, the non-banking financial company (NBFC) of Clearwater Capital Partners, has invested INR1 billion (€13.4 million; $14.9 million) in a Mumbai residential project.

The property is located at Churchgate in south Mumbai, comprising three- and four-bedroom apartments with a total saleable area of around 100,000 sq.ft. It is being jointly developed by local developers Rajesh Lifespaces and Suvidha Group.

“This is a unique opportunity to participate in a South Mumbai residential project, located at a prime location within the central business district region of the largest cosmopolitan city of India with an established and credible partner,” Sanjay Grewal, chief executive officer of Altico Capital, said.

Recently, the NBFC made its biggest investment of INR5 billion in a portfolio of projects developed by Nirmal Group. Last year, it invested INR4.5 billion in a Radius Group project in Mazgaon in south Mumbai.

Altico has traditionally financed mid-income and affordable housing in India’s top property markets including Mumbai, Bengaluru and Pune. It is planning to invest INR50 billion in residential real estate projects by March 2017 across the region.

The NBFC is expanding its coverage to include construction financing to large developers and financing for commercial projects in major metros and will deploy around 15-20 percent of its overall book size in these new strategies, according to Economic Times India.