HDFC Capital to invest ₹1500 crore in 18 Eldeco housing projects in Tier 2 and Tier 3 towns
Delhi-NCR real estate news: HDFC Capital will invest ₹1500 crore in 18 upcoming projects by the Eldeco Group in Tier 2 and Tier 3 towns
HDFC Capital Advisors Limited, the real estate private equity arm of HDFC Group, will invest ₹1500 crore in Delhi-based Eldeco Group's upcoming projects across Tier 2 and Tier 3 towns. These 18 housing projects are expected to generate a revenue of close to ₹11000 crore, the company said on April 13.
The total development area in these 18 projects will be more than 10 million (100 lakh) square feet with a "combined revenue potential of about ₹11,000 crore", HDFC Capital said.
These 18 residential projects will come up across multiple towns including Panipat (Haryana), Sonipat (Haryana), Rudrapur (Uttarakhand), Ludhiana (Punjab), Kasauli (Himachal Pradesh) and Rishikesh (Uttarakhand), with total development area of more than 10 million square feet and combined revenue potential of about Rs. 11,000 crore.
Vipul Roongta, Managing Director and CEO, HDFC Capital, said that the company is bullish on the potential of tier 2 and tier 3 towns situated within a 300-kilometer radius of major metropolitan areas.
“Our partnership with Eldeco aligns with our long-term vision of catalyzing the development of sustainable aspirational housing for India’s expanding middle class. This collaboration is aimed at leveraging the growing infrastructure development in these regions which is bringing these towns closer to the metro cities and employment hubs. Eldeco has a successful track record of developing townships in tier 2 and 3 towns and we’re excited to partner with them,” he said.
Pankaj Bajaj, chairman and managing director, Eldeco Group, said, “We are happy to partner with HDFC Capital in our mission to develop vibrant, well-planned communities across India. This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India's economic centers. There is a huge unmet demand for quality housing in tier 2 and 3 cities across India. There is just not enough supply. In this platform with HDFC Capital, we will be able to address some of this demand in cities of North India”.
HDFC Capital and EIPL's collaboration
This collaboration is part of HDFC Capital’s broader strategy to support the development of affordable and mid-income housing and marks another key milestone in its goal of addressing the housing needs across India’s growth corridors in tier 2 and tier 3 towns.
The platform with HDFC Capital is with Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted arm of the Eldeco Group. Promoted by Pankaj Bajaj, the group also operates the listed Eldeco Housing & Industries Ltd in the Lucknow market under a brand license agreement with EIPL.
HDFC Capital, a subsidiary of HDFC Bank Ltd, is the real estate private equity arm of HDFC Group. HDFC Capital is aligned with the Government of India’s ‘Housing for All’ initiative and is focused on financing the development of affordable and mid-income homes in a sustainable manner.
HDFC Capital is the investment manager to four SEBI registered Category II Alternative Investment Funds. These funds combine to create a$ 4.2 billion platform targeting the development of affordable and mid-income housing in India.
Last month, HDFC Capital invested ₹1,300 crore in a platform with realty firm Total Environment for development of ₹10,000-crore worth housing projects in Bengaluru.
