Eldeco Infrastructure and Properties Ltd, part of Eldeco Group, has partnered HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) -- a fund managed by HDFC Capital Advisors Ltd -- for a platform focused on the development of low-rise, plotted development projects in Tier II cities in National Capital Region (NCR).
The developer will take up projects under special purpose vehicle Eldeco Greens Infrastructure Pvt Ltd. The platform has an initial investment of Rs 150 crore ($20 million).
The platform has been kicked off with two projects -- one each in Panipat and Faridabad -- with combined saleable area of approximately 1.5 million square feet and sales revenue of approximately Rs 500 crore.
“In line with the Housing for all 2022 vision of the government of India, HDFC’s endeavour is to help address the demand-supply gap in affordable housing in India by providing flexible, long-term capital to leading developers across the country,” said Renu Sud Karnad, managing director, HDFC Ltd.
HDFC Capital Advisors Ltd is the investment manager to H-CARE 1 and H-CARE 2. 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).
H-CARE 1 and H-CARE 2 together have a corpus of over $1.1 billion, targeting affordable and mid-income residential projects in India’s leading 20 cities. The primary objective of this platform is to provide long-term, equity and mezzanine capital to marquee developers at the land and pre-approval stage for development of affordable and mid-income housing in India.