HDFC fund picks up 50% in ACME project

Though the fund has bought the stake in a special purpose vehicle (SPV) to develop an eco- township, the exact financial details of the deal is not known.

ACME Ozone, a 1.1 million sq ft township, will have 760 residential apartments and a small commercial space based on the eco-living theme. The company has already launched the project, expected to be completed in four years.

K G Krishnamurthy, MD & CEO, HDFC Property Ventures, could not be contacted for comments. When contacted, Pravin Doshi, chairman of ACME Group said, "It is true that HDFC fund has picked up almost 50 per cent stake in the project. However, we cannot reveal the financial details due to our non-disclosure agreement,'' Doshi said.

HDFC's international property fund raised $750 million (nearly Rs 3,000 crore) in early 2007 from international investors. An HDFC-backed international fund recently picked up a 45 per cent stake for Rs 250 crore in Mumbai-based developer Lodha group's realty project in Hyderabad.

HDFC Property Fund and its international property fund have also committed Rs 40 crore each in Sterling Developers' multi-purpose property development project in Bangalore.

The venture capital arm of HDFC, HDFC Venture, has also picked up 49 per cent stake in two subsidiaries of Godrej Properties. Indian developers, hit by a credit squeeze due to rising interest rates, have been raising funds from PE developers, diluting stakes in SPVs.