In the first investment by any private equity fund manager in real estate post the lockdown, HDFC Capital Advisors, part of HDFC, has invested in a mid-income housing project in Mumbai.
HDFC Capital invested Rs 275 crore in the project of Kalpataru in Kandivali area of Mumbai, sources in the know said. The project has total area of 1 million sq ft.
The deal is in the form of structured debt. The investments were made from HDFC Capital Affordable Real Estate Fund (Hcare fund 1 & 2) which has a corpus of $ 1.1 billion. Abu Dhabi sovereign fund ADIA is a key investor in the fund.
"The project was launched in March and investment was made in April,” sources said.
A mail sent to HDFC did not elicit response.
A Kalpataru spokesperson confirmed the deal. “The deal during such challenging times stands testimony to Kalpataru’s stellar track record of landmark developments and delivery. We are confident it will create strong long-term value for all stakeholders” the spokesperson said.
The project, Kalpataru Vienta, is located off Western Express Highway in Kandivali and has apartments in two, three and four bed-room configurations. About 100 of the 172 apartments in Phase 1 sold out, he said.
HDFC Capital has been focusing on affordable and mid income housing for a while now.
“Smaller apartments in the range of Rs 1 crore to Rs 1.5 crore are selling well. They are focusing on this segment,” sources said.
“After the Covid 19, property market is consolidating very fast in favour of top firms with a strong brand and balance sheet. HDFC Capital has established partnerships with the big names,” sources said.
HDFC Capital has done platform level deals with ATS Infrastructure, Mahindra Lifespaces, Prestige and so on.