Kumar Urban raises Rs 300 crore from Altico Capital for its KUL Ecoloch project

Altico Capital - a non banking financial company (NBFC) announced that it has closed a Rs 300 crore transaction with Kumar Urban Ltd (KUL).

This funding involves for a residential township named ‘KUL Ecoloch’, located near Hinjewadi, Pune. It is expected to be utilized towards refinancing the existing lenders and construction of the township.

KUL Ecoloch is a mid-segment project, with offerings of 1BHK, 2BHK and 3 BHK apartments and total saleable area of more than 3 mm sqft. The township is a brownfield project with Phase 1 substantially delivered while Phase 2 and 3 currently under construction.

Sanjay Grewal, CEO of Altico Capital mentioned that “The project location, specifications, sales and construction progress, promoter resourcefulness as well as significant track record of the KUL Group in the Pune market were the key drivers for Altico Capital’s investment in the project.”

Also this move by Altico Capital comes at a time where the company plans to deploy Rs 3,000-4,000 crore on an annual basis into the residential and commercial real estate sectors across Tier-1 cities in India.

On the Pune market, Grewal stated that “In the last couple of months Altico has concluded several transactions in Pune including the Rs 240 crore investment with Marvel Realtors for the construction of a portfolio of projects followed by a Rs.180 crore transaction with Pharande for their L-Axis and Woodsville project on Spine Road.

He further added that the overall exposure to this key market should cross Rs 1,000 crore soon with our main focus remaining on providing capital to leading developers focused on mid-income and affordable residential projects in established locations.

"The Pune market for the budget product remains stable driven by end users with approx. 15,000-20,000 units being sold in the last 6 months and inventory levels coming down sharply due to new launches being deferred by developers given their focus on completing existing projects," added Grewal. 

KUL Group is one of the leading developers in Pune, and has delivered residential and commercial projects totaling more than 8 mm sq ft. Presently, it is developing multiple projects in Mumbai and Pune markets with launched saleable area totaling more than 6 mm sq ft. The group has funding relationships with various public sector and private banks, private equity investors and other financial institutions for developing its ongoing projects.