HDFC and realty firm Arvind SmartSpaces have set up a Rs 250-crore fund to develop affordable and mid-income housing projects.
Arvind SmartSpaces, part of the Lalbhai group, said in a statement that it has "entered into a strategic partnership with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) -- a fund managed by HDFC Capital Advisors, a wholly owned subsidiary of HDFC Ltd".
The partnership will focus on the development of affordable and mid-income housing projects across the country.
The proposed developments will be undertaken by a special purpose vehicle Arvind Homes Pvt Ltd set up with an initial investment of Rs 250 crore, it added.
"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," Renu Sud Karnad, managing director, HDFC Ltd.
Vipul Roongta, MD & CEO of HDFC Capital Advisors, said the company's partnership with Arvind SmartSpaces 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 top rated developers with a good track record of development and delivery and a long-term view of affordable housing."
Arvind SmartSpaces Chairman Sanjay Lalbhai said, "We are confident that this joining of hands between the two...will create long-term value for all the stakeholders."
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