Arvind SmartSpaces, HDFC Capital form ₹900 cr housing platform
Arvind SmartSpaces and HDFC Capital will invest ₹300 crore and ₹600 crore respectively in the joint venture and the funds will be used for the acquisition of new projects for residential development
PremiumBengaluru: Arvind SmartSpaces Ltd (ASL), the real estate arm of Lalbhai Group, on Friday said it will form a ₹900 crore residential development platform with HDFC Capital Advisors , the investment manager of HDFC Capital Affordable Real Estate Fund – 3 or HCARE – 3.
ASL and HCARE-3 will invest ₹300 crore and ₹600 crore respectively in the joint venture. The funds will be used for the acquisition of new projects for residential development in Ahmedabad, Bengaluru, Pune and Mumbai Metropolitan Region (MMR).
ASL will set up a separate special purpose vehicle (SPV) to house the projects under this platform, which is expected to create overall revenue of ₹4000-5000 crore, excluding reinvestment potential, ASL said.
“…The proposed platform with HDFC Capital for ₹900 crore approved today by the board, will help exponentially grow our footprints in targeted geographies and in-turn expected to create significant value for stakeholders. This platform builds upon the success of the previous platform with HDFC Capital set up in 2019 and triples our capital investment abilities in the short term," said Kulin Lalbhai, director, Arvind SmartSpaces.
Last year, Ahmedabad-based ASL raised ₹85 crore from H-CARE 1. In 2019, ASL and HCARE-1 had set up a ₹250 crore residential joint venture to develop mid-income and affordable housing projects.
“The proposed partnership is expected to give ASL significant headroom to capitalise on the growth opportunities in our focused markets. We are already at advanced stages of finalisation of two projects and we further expect 4-5 more such projects within the platform over the next 12 months. The platform is expected to generate significant upside to ASL project pipe line while efficiently managing risk profile of the balance sheet," said Kamal Singal, managing director and CEO of Arvind SmartSpaces.
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