Eldeco Infra, HDFC Capital float platform for low-rise plotted development

Projects will be undertaken by SPV with initial outlay of Rs 150 cr; two projects identified in Panipat and Faridabad with combined saleable area of 1.5 mn sft, potential sales of Rs 500 cr

Eldeco Infrastructure and Properties said today that it has partnered with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), a fund managed by HDFC Capital Advisors Limited, to form a platform focused on the development of low-rise plotted development projects in tier-2 cities in the National Capital Region (NCR).

The proposed projects will be undertaken by a special purpose vehicle, Eldeco Greens Infrastructure Private Limited, set up with an initial investment of Rs 150 crore. Currently, two projects have been identified in Panipat and Faridabad with combined saleable area of approximately 1.5 million sq ft and sales revenue of approximately Rs 500 crore, it said.

Renu Sud Karnad, managing director, HDFC, said, “In line with the ‘Housing for all 2022’ vision of the Government of India, 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. We are committed to partnerships with trusted real estate brands like Eldeco with a good track record of development and delivery.”

Vipul Roongta, MD & CEO of HDFC Capital Advisors, added, “Our endeavour is to act as an enabler to the growth of affordable and mid-income housing in the country. Through our partnership with Eldeco Group, we will focus on meeting the increasing demand for high-quality low-rise and plotted development at affordable prices. This inline with HDFC Capital’s strategy of partnering with top-rated developers to increase the supply of affordable and mid-income housing in India while ensuring quality and timely construction.”

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HDFC Capital Advisors is the investment manager to HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) and HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2), both Sebi-registered Category II Alternative Investment Funds. The primary investors in the H-CARE funds include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).

H-CARE 1 and H-CARE 2 combine to create a US$1.1 billion platform targeting affordable and mid-income residential projects in India’s leading 20 cities.

HDFC Capital Advisors recently launched the HDFC Affordable Real Estate and Technology Program (H@ART). H@ART seeks to mentor, partner and invest in real estate technology companies that drive innovation and efficiencies within the affordable housing ecosystem.