Bengaluru: Real estate firm Arvind SmartSpaces Ltd, part of Ahmedabad-based Lalbhai Group, on Thursday said it has partnered with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), which is managed by HDFC Capital Advisors Ltd, to develop affordable and mid-income housing projects.
The proposed projects will be undertaken by a special purpose vehicle "Arvind Homes Private Limited" with an initial investment of ₹250 crore. The partnership will focus on projects across India while ensuring quality and timely delivery of finished units.
Renu Sud Karnad, managing director, HDFC Ltd said in a statement,"Housing remains a crucial need in India and the demand for affordable housing is expected to grow substantially with increased urbanisation. HDFC's endeavour is to help address the demand-supply gap in affordable housing in India by providing flexible, long-term capital to leading developers across India."
Vipul Roongta, MD & CEO, HDFC Capital Advisors said, "Our partnership with Arvind Smart5paces will focus on the development of high quality affordable and mid income housing in a cost-effective manner. This in line with HDFC Capital's strategy of partnering with developers with a good track record of development and delivery and a long-term view of affordable housing."
HDFC Capital, a subsidiary of HDFC Ltd, has been offering long-term equity capital to select real estate developers, mainly to develop affordable housing, preferred by builders and investors alike.
Kamal Singal, MD and CEO of Arvind SmartSpaces added that the proposed structure ensures that long-term patient capital is made available to the business without putting undue pressures on its balance-sheet to take care of short and medium business cycles.
In 2018, HDFC Capital and Prestige Estates Projects Ltd created an affordable housing platform to jointly invest ₹2,500 crore in low- and mid-income housing projects. Earlier this year, it partnered with developer Tribeca to form a ₹500 crore housing platform.