Altico Capital diversifies into warehousing, logistics funding
Abu Dhabi Investment Council-backed real estate-focused non-banking financial company (NBFC) Altico Capital has extended Rs 650 crore to Mumbai-based warehousing and logistics company Renaissance Group.
The transaction includes Rs 50-crore co-investment from Asia-focussed private equity fund and Altico’s founding shareholder, Clearwater Capital–now Fiera Capital.
“The funding is towards an ongoing warehousing and industrial park Renaissance Industrial Smart City in Bhiwandi (near Thane) having a development potential of 20 million sq ft across warehousing and industrial space,” said Sanjay Grewal, CEO of Altico Capital.
Over 3 million sq ft of warehousing space in the project has already been committed to tenants including a global e-commerce player.
The transaction marks Altico’s foray into financing warehousing and logistics projects in line with the Altico’s strategy to diversify beyond residential and commercial real estate into other allied sectors such as hospitality, healthcare, education and core infrastructure.
This also coincides with the entry of several large global institutional owners and operators of industrial parks like Logos, E-Shang Redwood, AscendasFirstspace into the Indian warehousing sector.
Altico also grew gross income 38% from a year ago to Rs 585 crore during the first half of 2018-2019. The NBFC’s profit stood at Rs 160 crore on the back of a 60% growth in its loan book, which stood at Rs 7,265 crore as on September end.