HDFC Capital, the property fund-management arm of HDFC, is in talks with leading developers in Kolkata and Ahmedabad to float an affordable housing platform, said a source. The names of the developers could not be ascertained.
In an investment platform, which is like a joint venture, a PE fund brings in capital and a developer identifies land parcels and develops multiple projects.
HDFC Capital has floated at least five platforms for affordable housing with developers such as Mahindra Lifespaces, Tribeca and Rustomjee for west India and with Prestige Estates for south India. It also picked up a stake in ATS Homekraft, the affordable housing arm of ATS Infrastructure.
“The idea is to cover key property markets with different affordable housing platforms,” the source said.
Though there is a buzz about the fund manager floating a new fund for affordable housing and investors have already committed money, the company’s spokesperson denied it.
HDFC Capital has invested $1 billion with residential property developers over the last two years, probably the highest in the segment.
HDFC Capital has raised $1.1 billion for affordable housing under $450 million H-CARE-1 and $650 million
H-CARE-2 funds, which were raised in 2016 and 2017, respectively, and committed most of the corpus. Both funds have a tenure of 12 years and 9 years, respectively.
Abu Dhabi’s sovereign fund ADIA, National Investment and Infrastructure Fund (NIIF) and others invested in its previous fund.
“We are getting a lot of enquiries from good developers and for good projectsm which was not the case earlier,” the source said.
Shobhit Agarwal, managing director of Anarock Capital, said: “It is a very grounded fund management company and understands the need of the hour. It has backed large developers and brought the right products to the market.”
Overall, $8.6 billion has come in real estate in 2017 and 2018. Of which, $930 million came in residential real estate. In Q1, 2019, about $200 million came in residential real estate, according to Anarock Property Consultants.
HDFC Capital has floated platforms with Mahindra, Tribeca, Rustomjee, Prestige and ATS Homekraft
HDFC Capital has invested $1 billion with residential property developers over the last two years
HDFC Capital has raised $1.1 billion in funds for affordable housing under $450 million H-CARE-1 and $650 million H-CARE-2 funds
Both funds have a tenure of 12 years and 9 years, respectively
Abu Dhabi’s ADIA, National Investment and Infrastructure Fund (NIIF) and others invested in its previous fund
Souce: HDFC Capital