Altico Capital invests Rs 180 crore in Pune's Pharande Group

Funding in tranches; proceeds to used by developer for refinancing existing lender and for project construction

Non-banking finance company Altico Capital has invested Rs 180 crore in two projects of Pune-based real estate developer Pharande Group. The funding will be made in tranches and shall be used by the developer for refinancing an existing lender and for construction of the projects.

"The locations of the respective projects, the product offering and current stage of development were key reasons for Altico's interest in the projects. Pune is a key market for us, earlier in the quarter we had completed a Rs 240 crore transaction with the Marvel Group. Now, in addition to the Pharande transaction we plan to deploy an incremental Rs. 400-500 crore in the next couple of months with developers focused on delivering mid-income and affordable residential projects," said Sanjay Grewal, CEO, Altico Capital.

The investment has been made against two brown-field residential projects by the name 'L-Axis' and 'Woodsville-III' in and around the Spine Road in Pune. The proceeds of the funding shall be used by the developer for refinancing an existing lender and for construction of the projects.

These residential projects will cater to the mid-income housing demand in the PCMC area, offering 2 BHK and 3 BHK apartments with prices starting from Rs 50 to Rs 60 lakhs. Both projects have reached advanced level of construction.

Pharande Group, focused on developing residential projects in the PCMC area of Pune, has developed till date over 3 million sq ft.