Non-banking finance company Altico Capital has announced that it will provide a Line of Credit of upto Rs 300 crores to Phoenix Group, which the realty player plans to use to fund the construction of two of its projects in Hyderabad and to refinance some existing lenders
HYDERABAD: Non-banking finance company Altico Capital, on March 23, 2017, said that it will provide a credit line of upto Rs 300 crores to realty player Phoenix Group. “The funding, which shall be made in tranches, is proposed to be used by Phoenix, largely towards refinancing of some existing lenders and for construction funding across two of its projects in Hyderabad,” Altico said in a statement.
Phoenix is developing a residential project ‘Halcyon’ at Jubilee Hills and a commercial project at Hafeezpet, in Hyderabad. Recently, Altico Capital had also invested in a residential project of Bengaluru-based Mantri Group, in Hyderabad. “Altico will be looking at similar transactions in the commercial real estate segment, including logistics and warehousing in the next financial year, to complement its existing real estate book, as part of its diversification strategy,” Altico Capital’s chief executive, Sanjay Grewal said.
He said availability of land, favourable government policies and robust infrastructure, are a few of the reasons that will lead to growth of the real estate market in Hyderabad.
“We are evaluating multiple opportunities in Hyderabad, across the residential and commercial space and plan to deploy another Rs 750-1,000 crores during the next financial year” he added.
Hyderabad-based Phoenix Group has so far delivered over 7 million sq ft of residential and commercial space. Recently, the Group signed up with Embassy Group, to develop 7 million sq ft of commercial SEZ, in the IT corridor of Gachibowli, Hyderabad on a joint venture basis, it added.