HDFC Capital, Hero Realty set up ₹1K cr platform for mid-income housing

HDFC Capital has tied up with Hero Realty to build a Rs 1,000 crore mid-income housing platform aimed at accelerating development across Tier 1 and Tier 2 cities

HDFC Capital, the real estate private equity (PE) arm of HDFC Group, has partnered with Delhi NCR based developer Hero Realty to set up a Rs 1,000 crore platform for mid-income housing in Tier 1 and Tier 2 cities.

 

According to people in the know, the investment will be made from the PE firm’s HDFC Capital Affordable Real Estate Fund-3 (HCARE-3) and will focus on Hero Realty’s five to six projects in North India. 

 

With its base in Delhi NCR, Punjab and Haryana, Hero Realty currently has five projects under development with 6.4 million square feet (msf) of potential and an additional 8 msf across five projects in the pipeline.

 

Rohit Kishore, chief executive officer (CEO) at Hero Realty said that the partnership with HDFC Capital will help it scale faster into Tier 1 and Tier 2 cities, addressing the significant unmet demand for mid-income housing while delivering on the promise of superior living experiences.

 

“We see tremendous potential in India’s Tier 1 and Tier 2 cities, where infrastructure growth and rising aspirations are driving demand for mid-income housing,” Vipun Roongta, managing director and chief executive officer (CEO) at HDFC Capital added.

 

This announcement comes days after HDFC Capital’s HCARE-2 fund received a Rs 1,250 crore exit in mid-income housing development projects for Noida based ATS HomeKraft. 

 

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.

 

HDFC Capital is the investment manager to four category II alternative investment funds, including HCARE-2 and 3, which together create a $4.5 billion platform targeting the development of affordable and mid-income housing in India.

 

Its recent investments include Rs 1,150 crore with Provident Housing, Rs 1,500 crore in Eldeco Group, Rs 1,300 crore with Total Environment, Rs 1,150 crore with Runwal Enterprises and Rs 1,450 crore with Kalpataru.