Alliance Group gets Rs 165 cr from Kotak for realty project in Chennai

Real estate company Alliance Group has raised Rs 165 crore from Kotak Realty Fund for an ongoing residential project in Chennai.

The debt was taken against affordable housing projects. It has taken nearly Rs 800 crore from Kotak Realty Fund for five housing projects in Chennai and Hyderabad.

The Old Mahabalipuram Road project of the Alliance Group is spread across 12.5 acres and has 4,000 units worth Rs 30 lakh to Rs 55 lakh each.

Chairman of Alliance Group, Manoj Namburu, said that the company closed two deals with Kotak during the Covid-19 pandemic and expanded its business in Hyderabad. The last funding round was used to provide an exit to Indostar.

Kotak Investment Fund had previously invested in Alliance Group's residential project in 2016 from its $400 million funds raised in 2014 from Abu Dhabi Investment Authority.

Currently, the company has 20,000 houses under different stages of construction and plans to build 50,000 more units in the next three years.

Namburu said that there are always a lot of tailwinds situation in business, but having a strong finance partner helps the company to expand quickly and brings opportunity in diversity.

The real estate firm also speaks with institutional funds of warehousing space, besides increasing its reach in commercial sectors.

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