ATS bags a Grandiose deal

Even as unsold inventory level peaks in the NCR, ICICI Prudential AMC commits Rs 130 crore to the Noida-based developer

You know the tale about how the slow-but-steady tortoise perseveres to beat the speedy-but-inconsistent hare. It turns out that lesson applies to investing in the current slow market, too. It’s easy to be attracted to investments that surge ahead like the hare when the going is good. But ICICI Prudential AMC, India's second largest fund house, has invested Rs 130 crore in a Sector-150 project on Noida Expressway at a time when unsold inventory is bursting at its seams. The lucky developer happens to be ATS Infrastructure and this is definitely the first PE player trusting ATS with its funds. So when most developers are finding it tough to meet both ends, ATS has bagged the plum deal that should keep the developer busy delivering projects on time.
Honestly, I had never been a big fan of the Noida-based ATS Infrastructure till about a year ago. No softening plants in their gated communities made a mess of the glitzy sanitaryware homebuyers so gladly installed in their new apartments.Those who don't know, Noida is famous for its brackish water and non-supply of Ganga water makes headlines at least once a month. Further, no piped gas meant rickety tempos would be dropping cylinders all over the place. But lately, I find myself praising the developer, especially for his single-minded approach to delivering the projects on time, or at least with the least delay. Getamber Anand, Managing Director of ATS Infrastructure, confirmed that the company has raised funding for its Sector-150 project. "It is a prime sector with good connectivity to the Yamuna Expressway and the Faridabad-Noida-Ghaziabad Expressway that has now been declared a national highway. The low density development here will be a big attraction," he said. A spokesman for ICICI Prudential AMC, which manages the ICICI Prudential Real Estate Alternate Investment Fund 1 - a $134 million private equity fund with a green shoe option of $98.28 million - said of this total commitment, Rs 90 crore has already been put into the project while the rest will be invested in tranches. ICICI Prudential Real Estate Alternate Investment Fund 1 provides growth stage capital to companies operating in India. The fund seeks to invest in real estate sector focusing on residential projects in the top seven property markets of the country, including NCR, Mumbai and Bengaluru.