HDFC Capital Advisors Ltd, the real estate private equity arm of the HDFC Group, has partnered with South India-based DivyaSree Developers to set up a platform for residential projects.
The platform will infuse Rs 1,500 crore (about $157 million) as growth capital over the next three to four years to support the acquisition and development of housing projects with a potential gross development value of Rs 6,750 crore, the companies said in a statement.
The platform will leverage DivyaSree’s development capabilities and HDFC Capital’s investment expertise, they said.
“India’s residential real estate sector continues to offer strong opportunities for institutionally backed development, supported by sustained demand for high-quality housing across urban markets. Through this partnership, we aim to support the creation of a scalable pipeline of residential projects that delivers long-term value for homebuyers and all stakeholders,” said Vipul Roongta, managing director and CEO, HDFC Capital.
Avinash Suresh, CEO of residential real estate at DivyaSree, said the platform gives the company the capital and momentum to scale across existing and new markets. Suresh said the company aims to build a residential portfolio in cities where demand is strongest, starting with Bengaluru, Hyderabad and Chennai and expanding into other high-growth urban markets.
Headquartered in Bengaluru, DivyaSree has delivered approximately 30 million square feet of real estate, majorly through office developments.
HDFC Capital, which manages roughly $5 billion across funds, has struck platform deals with multiple partners in the recent past. The firm, which primarily focused on affordable and mid-income housing, has been expanding into adjacent residential segments, including student housing, industrial worker housing and senior living.
Earlier this month, the firm joined hands with Godwitt Group to set up a housing platform for workers in manufacturing and industrial corridors. In July, it teamed up with Primus Senior Living Pvt Ltd, a Bengaluru-based company that counts venture capital firm General Catalyst and Zerodha co-founder Nikhil Kamath as investors, to set up a Rs 2,000-crore platform to develop senior living communities across India.
