The funding that will be made in tranches is proposed to be used by Phoenix Group largely towards refinancing of some existing lenders and for construction funding across two of its projects including Halcyon, its residential project in Jubilee Hills and a commercial development at Hafeezpet, the NBFC said in a release.
“Track record of the group, location of the projects, product offering and stage of construction were key reasons for Altico’s investment with the group. While Halcyon is a premium development which has received good sales response from customers at a sought after location in Jubilee Hills, Trivium which is commercial project of around 1 million sq ft is located at the growing micro market of Hafeezpet and is pre-leased to a well-known international BPO firm,” said Sanjay Grewal, CEO, Altico Capital.
According to Grewal, Altico will be looking at similar transactions in commercial real estate segment including logistics and warehousing in next financial year to complement its existing real estate book as part of its diversification strategy.
Recently, Altico Capital had also invested in a residential project of Bangalore based Mantri Group in Hyderabad.
The NBFC is evaluating multiple opportunities in Hyderabad across residential and commercial space and plans to deploy additional Rs 750-1,000 crore during the next financial year, Grewal said.
“We are positive on the Hyderabad market given the business friendly environment adopted by the current State Government which has led to renewed demand of IT majors for commercial space in Hyderabad. Availability of land, favourable government policies and robust infrastructure are few of the reasons which we think will lead to growth of real estate in Hyderabad,” he added.
Phoenix Group, promoted by Suresh Chukkapalli, has so far delivered over 7 million sq ft of residential and commercial space. The group has developed key projects in Hyderabad like Avance Business Hub in HITEC City. Recently, the group has signed up with Embassy Group to develop a 7 million sq ft of commercial SEZ in the IT corridor of Gachibowli, Hyderabad through a joint venture.