Chennai: Indostar Capital Finance Ltd and Reliance Capital Ltd have invested `200 crore in Alliance group, a real estate company.
The consortium of institutions have invested in the holding company of Alliance group, Alliance Infrastructure Projects Pvt. Ltd.
The investment has been made through non-convertible debentures to fund Alliance Group’s expansion plans. The Bengaluru-based real estate company’s has a presence in Chennai, Hyderabad and Mysore.
“Although we had signed the agreement for the investment in August we received the disbursement just a week ago,” said Manoj Sai Namburu, chairman and managing director of the company.
The investment will be deployed in two projects—one in Chennai and the other in Bengaluru. The company plans to invest close `120 crore in the Chennai project.
“The market has been sluggish but there are positive signs that moving forward there will be an uptick,” he said.
In Chennai, the company is in the process of acquiring 10 acres of land near Thorapakkam and Pallavaram Ring Road. The project will involve houses with 650 sq. ft to 1,300 sq. ft. The Bengaluru project will be premium villa in northern Bengaluru.