HDFC Capital Advisors and realty firm Tribeca Thursday announced a Rs 500 crore fund for development of mid-income housing projects in Mumbai and Delhi-NCR.

The projects will be developed by Tribeca, which is developing two Trump Tower projects in Kolkata and Gurugram.

HDFC Capital Advisors, which is the real estate-focused fund management arm of HDFC Ltd, and Tribeca said the platform will invest Rs 500 crore through a combination of debt and equity.

This is probably for the first time, HDFC Capital has set up a platform with new age developers like us. We have already identified our first project in Gurugram where around 600 flats would be constructed, Tribeca MD Kalpesh Mehta told PTI.

The company has already tied up with a local developer who owns the land. This project would be developed at a construction cost of around Rs 300 crore, he said.

HDFC Capital has already put in Rs 135 crore as debt in this first project.

This platform will leverage Tribeca's asset light model of acquiring projects from existing developers through Joint Venture' and Development Management' structures.

Housing remains a crucial need in India and the demand for housing is expected to grow substantially with increased urbanisation. HDFC's endeavour is to participate in the huge opportunity of mid income and affordable housing in the country, HDFC Chairman Deepak Parekh said.

HDFC is committed to partner with developers who are aligned with its vision and values, he said.

We are happy to announce this investment with Tribeca, a new generation developer. This association will help address the demand-supply gap in affordable housing and will ensure that flexible financing is provided to quality developers, Parekh said.

Tribeca is a new age developer that is bringing a fresh perspective to this industry. We are looking forward to back them to create what we believe will become a scalable platform, Vipul Roongta, managing director and CEO of HDFC Capital Advisors said.

HDFC Capital manages two affordable housing funds--HDFC Capital Affordable Real Estate Fund I and II--which collectively have a corpus of around USD 1 billion.

Tribeca is currently developing five projects with a total value of Rs 6,500 crore across Mumbai, NCR and Kolkata.

Tribeca pioneered the branded residential business in India through a partnership with the Trump Organisation and made India, a country with the largest number of Trump branded properties outside of North America.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)