Real estate developer Arvind SmartSpaces Limited (ASL) has raised Rs 85 crore from HDFC Capital Affordable Real Estate Fund-1 (H-CARE 1) and the promoters of ASL, the company said in a statement.
The company at its meeting held on September 10 approved the allotment of 68.5 lakh equity share aggregating to about Rs 85 crore at the price of Rs 124 per share, according to SEBI ICDR Regulations 2018.
The statement further said that the fund raise proceeds will be used to strengthen balance sheet and grow the company.
“This infusion of long-term patient capital into the company will give us the flexibility to pursue strategic growth across all the segments that we operate in.
The enhanced equity base and low leverage gives the company significant headroom to raise further capital to pursue value accretive opportunities,” Sanjay Lalbhai, chairman, Arvind SmartSpaces Ltd, said.
“This investment is an extension to our existing partnership platform set up in 2019, with Arvind SmartSpaces. It meets our objective to provide long-term, equity and mezzanine capital to marquee developers for the development of affordable and mid-income housing in India.
Further, this is in line with HDFC Capital’s strategy of partnering with top rated developers with a good track record of development and delivery. We believe that consolidation in the residential sector is a given and that developers with strong brand presence shall capture a disproportionate share of the market,” Vipul Roongta, managing director and chief executive officer (CEO), HDFC Capital Advisors Limited, said.
“The company feels that there is a huge opportunity in real estate development in India especially in the post pandemic era. Organised developers with long-term and organised capital are in a unique position to deliver customer centric products and solutions on a sustainable basis.
This partnership will not only provide resources to pursue growth but also help in building the business further by leveraging the brands and legacy of trust that both the partners bring to the business," Kamal Singal, managing director and chief executive officer (CEO), Arvind SmartSpaces Ltd, said.
Arvind SmartSpaces has operations spread across 19 projects in four cities. It operates across multiple verticals like residential, commercial, industrial, retail, plotted developments, club houses and golf courses.
HDFC Capital Advisors Limited, a 100% subsidiary of HDFC Limited, manages two funds - HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) and HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2) - with a cumulative corpus of over $1 billion.
The primary investors in the H-CARE funds include a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) and the National Investment and Infrastructure Fund (NIIF).