Mumbai: Gurgaon-based developer Vatika Group on Friday secured Rs700 crore funding from Altico Capital and has closed the first tranche of Rs475 crore.

The money is being invested in a portfolio of projects with a potential of 3 million sq ft in the group’s flagship residential township Vatika India Next, Vatika said in a statement, adding, the balance funding will come in subsequent stages as the project is being developed over several phases.

Spread over 623 acres in Sector 82 to 85 in Gurgaon, Vatika India Next is an integrated township with already developed social infrastructure such as school, retail space and hospital and over 3,000 families are residing in the township in over 5,000 homes.

The township at the intersection of the NH-8 and the Dwarka Expressway. Commenting on the funding, Altico Capital chief executive Sanjay Grewal said the fund with over 25 years of track record has already delivered 42 million sqft and another 50 million sqft under development in Gurgaon.

“The investment aims to underwrite projects within a township development wherein catchment and marketability has been established," he said.

The fund will be used to develop 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 called Tranquil Heights and a commercial project, he added. “Our association with Vatika will help execute and deliver around 3 million sqft of residential, retail and office space with a further potential to add another over 1 million sqft in future," he said.

Altico Capital is a non-banking financial company, sponsored by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners. It has been a consistent lender to the real estate segment and plans to deploy around Rs5,000 crore on an annual basis into the residential and commercial real estate sectors across the major metros.

Headquartered in Gurgaon, Vatika Group claims to be largest private (non-listed) developer in north India and runs a facilities services arm with around 15 million sqft under management. CBRE’s Capital Markets team acted as the advisor to the transaction.

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