Altico lends $75m to Nirmal

The NBFC is backing three development projects and refinance the developer's other loans.

Altico Capital, the non-banking financial company of Clearwater Capital Partners, has invested 5 billion rupees ($75 million; €67 million) in Mumbai-based Nirmal Group.

The money will be used to refinance the company’s loans and fund the construction of three projects: three condominium towers named Amethyus, Zircon and Turquoise; a residential project named One Edition in suburban Mulund; and an early-stage project near Thane. The schemes have a total saleable area of about two million square feet with about 1.25 million square feet in advanced stages of construction.

“The Mulund market, already the largest residential micro-market of Metropolitan Mumbai, is poised to be one of the most vibrant markets with good physical and social infrastructure,” said Sanjay Grewal, CEO of Altico Capital, which will also refinance loans from Capital First and Piramal Fund Management.

Altico Capital has been actively investing in the Indian domestic residential real estate debt market. This month it made a 3 billion rupee investment in a residential project by Kumar Urban KUL, its third in Pune this year.

It had previously completed a 2.5 billion rupee multi-project-financing transaction with Marvel Developer and a 1.8 billion deal with Pharande Group.

Altico Capital is backed by Clearwater Capital Partners, Varde Partners and the Abu Dhabi Investment Council. Its development loans are focused on mid-income and residential projects in tier-one cities.