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Vatika raises Rs 700 crore from Altico Capital

Economic Times:  December, 2016

Bengaluru/Mumbai: In one of the largest real estate debt transactions this year, Gurgaon-based Vatika Group has raised Rs 700 crore from Altico Capital, a non-banking financial company.

“The first tranche of Rs 475 crore has already been deployed by Altico. The rest of the funding will come in subsequent stages as the project is being developed over several phases,” said two people familiar with the development. 

Altico has invested in a portfolio of projects with current potential of 3 million sq ft located in their flagship residential township ‘Vatika India Next’. 

Spread over 623 acres in Sectors 82-85 in Gurgaon, the project is a fully operational, integrated township with developed social infrastructure including school, retail spaces and medical facilities that are functional. “The investment aims to underwrite projects within a township development wherein catchment and marketability has been established. It also underscores the confidence of institutional investors to back Tier I developers who have focused on home deliveries and operating in midmarket segments in key micro markets of major metro cities,” said Sanjay Grewal, CEO, Altico Capital. 

CBRE’s Capital Markets team was the advisor to the transaction. Vatika has delivered around 42 million sq ft and another 50 million sq ft is under development across residential townships, offices and hotels. Last year, Piramal Fund Management and Singapore's GIC too had invested with Vatika. 

The NBFC said the investment is for development of specific projects in the township including a 14-screen PVR multiplex (which will be the largest PVR in Gurgaon), a mid-market group housing project Tranquil Heights, and a commercial project. The association with Vatika will help deliver around 3 million sq ft of residential, retail and office space with a further potential to add another over 1 million sq ft in phases.