Mahindra Lifespaces, HDFC Cap to develop affordable housing

Realty player Mahindra Lifespace Developers (MLDL) today said it has partnered with HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital) to create a Rs 500 crore platform which will invest in affordable housing projects across the country.
The company said the corpus will be mopped up over the next three years and will be invested in affordable housing projects.
The developments will be undertaken through Mahindra Happinest Developers, with a 51:49 equity share between MLDL and HDFC Capital, the company said.
"The platform will look to rapidly scale up in order to address the demand-supply gap in affordable housing in India, with an estimated development footprint of between 5-10 million sq ft, depending on the locations selected for its projects, under the Happinest name," it said.

The first project to be undertaken by the joint platform will be 'Happinest Palghar', expected to be launched in the second half of FY18.
"Affordable housing is a critical component of quality urban infrastructure as also a growth driver for the real estate industry in India. This partnership will leverage the experience and commitment of each organisation, to develop affordable homes that will address the largely unmet demand in this segment," MLDL Managing Director Anita Arjundas said.

Mahindra Lifespaces has been present in the affordable housing segment since 2014, through its category brand, Happinest and has launched over 1,600 units across the company's ongoing affordable housing projects in Chennai and Mumbai metropolitan region.

Commenting the partnership, HDFC Capital Advisors Chief Executive Vipul Roongta said, "the objective of this platform is to invest in residential affordable housing projects by providing long-term equity. Lack of patient long-term capital is one of the key challenges facing growth and development of low and middle-income housing in India."
He further said with the affordable housing segment expected to see healthy growth going forward given the impetus provided by the government through various incentives and subventions, this platform with MLDL is the need of the hour.