ATS HomeKraft provides ₹1,250 cr exit to HDFC Capital's HCARE-2 fund

The ATS group developer cleared dues to HCARE-2 entirely through project cash flows, highlighting strong demand and healthier balance sheets in mid-income housing

Delhi NCR-based mid-income housing developer HomeKraft, part of the ATS group, announced providing an exit to HDFC Capital Affordable Real Estate Fund-2 (HCARE-2) with the firm repaying Rs 1,250 crore to the fund.

 

“The repayment has been made entirely from HCARE-2 portfolio project cash flows, without any third-party refinancing, a standout move in India’s residential housing market,” the developer said in an official statement.

 

HCARE-2’s portfolio with ATS HomeKraft included projects comprising more than 7,500 units with a total sales value of Rs 8,000 crore.

 

The developer claimed that as part of the fund, it delivered multiple projects well ahead of schedule, along with launching a plotted development project along the Yamuna Expressway, wherein the demand significantly outstripped the supply of plots.

 

“Most of the projects launched in the portfolio are now almost three times higher than the launch price in a span of four to five years, which shows there is a large unmet demand for well-designed, high-quality mid-income homes,” said Vipul Roongta, CEO and MD at HDFC Capital.

 

The ATS group had established HomeKraft Infra in 2017 with equity participation from a fund managed by HDFC Capital Advisors, to exclusively develop mid-income projects across Delhi NCR.

 

HDFC Capital Advisors is the investment manager to four Sebi-registered Category II Alternative Investment Funds (AIFs), including HCARE-2, which combine to create a $4.5 billion platform targeting the development of affordable and mid-income housing in India.

 

“Our partnership with ATS HomeKraft reflects our strong conviction in developers who combine launch-to-delivery discipline with strong consumer traction in the mid-income housing space,” Pankaj Khanna, associate principal for investments and technical, from HDFC Capital, added.

 

The exit comes after the ATS group had recently prepaid Rs 190 crore to the SWAMIH Investment Fund I in a separate transaction for another project along the Dwarka Expressway.

 

“These exits are clearly a sign of healthy cash flows due to timely execution and underscore the group’s improving balance sheet and commitment to timely handovers,” HomeKraft added.

 

The developer is now looking at a new launch in Gurugram backed by a fresh fundraise of Rs 250 crore from H-CARE 3, which is slated for launch in 2026.