Vatika Group raises over $100 mn from Altico Capital

Non-banking financial company (NBFC) Altico Capital has closed a funding round of Rs 700 crore (around $103 million) with North India-based developer Vatika Group for a bunch of residential projects, the investment firm said in a statement. 

Of the total amount, the lender has already deployed the first tranche of Rs 475 crore across projects in Vatika’s key residential township Vatika India Next. The remaining amount will be deployed as per the milestones in the project development cycle.   

Located in Sector 82-85 in Gurgaon, the underwritten projects have a current development potential of 3 million sq ft. “The investment is for development of specific projects in the township, including a 14-screen PVR multiplex (which will be the largest PVR theatre complex in Gurgaon), a mid-market group housing project (Tranquil Heights) and a commercial project,” it said. 

The township is spread across 623 acres and is located at the intersection of two roads in the area–NH8 and the 150-metre wide Dwarka Expressway (NH8) connecting to North-West Delhi. 

Sanjay Grewal, chief executive officer, Altico Capital, said, “We have partnered with a top-notch real estate developer in North India with over 25 years of track record and having delivered 42 million sq ft and another 50 million sq ft under development across residential townships, offices and hotels and having established itself as an active stakeholder in the development of Gurgaon. The investment aims to underwrite projects within a township development wherein catchment and marketability has been established.”

“Vatika India Next township’s success is driven by affordable pricing, social amenities within the township, including an operative school and other amenities already under execution, direct access from NH-8 and good connectivity through the planned Dwarka Expressway, NPR and SPR. Our association with Vatika will help execute and deliver around 3 million sq ft of residential, retail and office space with a further potential to add another 1 million plus square feet in future phases of development,” he said.

CBRE’s capital markets team was the advisor to the transaction.

Backed by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners, Altico Capital has been a consistent lender to the real estate segment and plans to deploy Rs 4,000-5,000 crore on an annual basis in residential and commercial real estate sectors across Tier-1 cities in India. 

It recently announced that it will deploy roughly Rs1,000-1,500 crore in the NCR market in the current financial year. Its latest investment in NCR was with Sare Homes which raised Rs 315 crore from Altico and KKR.

Incorporated in 1986, Vatika claims to have successfully delivered 42 million sq ft to date. The group focuses primarily on phase wise development of mid and upper mid-income townships, commercial, retail and hospitality projects.