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HDFC realty acquires stake in HomeKraft; to develop mid-income projects

The investment by HDFC Capital Affordable Real Estate Fund in HomeKraft is one of the rare entity level equity investments in the real estate sector

Press Trust of India  |  New Delhi 


HDFC's real estate fund has acquired a "significant minority" stake in Noida-based firm and will create a $300 million corpus to develop affordable and mid-income housing projects.

In March this year, founder Getamber Anand launched a new venture to develop mid-income and projects in a price range of Rs 3-7 million.

has diluted a significant minority equity stake to Capital Affordable Real Estate Fund, a fund managed by Capital Advisors, according to a joint press release.

The investment by the Fund in HomeKraft is one of the rare entity level in the real estate sector, it added.

HomeKraft will invest over $300 million for development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds, the statement said.

"The segment is expected to see healthy growth going forward given the impetus provided by the government through various incentives and subvention scheme," MD Renu Sud Karnad said.

In December last, HDFC Capital announced raising of $1 billion to create a real estate fund that would invest in affordable and mid-income housing projects in the top 15 cities of the country.

is a 100 per cent subsidiary of HDFC Ltd.

"We have had a persistent demand for affordable and mid-segment housing from prospective customers, who aspire for an ATS home but are unable to afford due to budget constraints. We are very happy to partner HDFC Capital to work together to develop homes in affordable and mid-income segment under HomeKraft," said Getamber Anand, CMD,

HomeKraft is led by Prasoon Chauhan, CEO, along with a team of professionals.

HomeKraft is looking to clock sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of $600-750 million.

All apartments under this brand would qualify under the PMAY scheme, wherein, various concessional like interest subvention under CLSS, concessions on GST, etc. would be available.

ATS has completed nearly 30 million square feet of residential space and 40 million square feet is under construction.

First Published: Wed, June 13 2018. 16:25 IST