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Updated on: Tuesday, August 24, 2021, 03:53 PM IST

Eldeco group ties up with HDFC Capital to set up Rs 150 cr fund to build housing projects

PTI
Eldeco Infrastructure and Properties Ltd, has joined hands with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), to form a platform focused on the development of low-rise, plotted development projects | File Photo

Eldeco Infrastructure and Properties Ltd, has joined hands with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), to form a platform focused on the development of low-rise, plotted development projects | File Photo

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Realty firm Eldeco group has partnered with HDFC Capital Advisors' real estate fund to set up a Rs 150 crore platform for development of low-rise and plotted development projects.

Eldeco Infrastructure and Properties Ltd, which is part of Eldeco group, has joined hands with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), a fund managed by HDFC Capital Advisors Ltd, to form a platform focused on the development of low-rise, plotted development projects, Eldeco group said in a statement.

The proposed developments will be undertaken by a special purpose vehicle ''Eldeco Greens Infrastructure Private Limited'' set up with an initial investment of Rs 150 crore, it added.

Currently, two projects have been identified in Panipat and Faridabad with combined saleable area of approximately 1.5 million square feet and sales revenue of about Rs 500 crore.

Renu Sud Karnad, Managing Director, HDFC, said “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 India."

"We are committed to partnerships with trusted real estate brands like Eldeco with a good track record of development and delivery," she said.

Vipul Roongta, MD and CEO of HDFC Capital Advisors Ltd, said: "Through our partnership with Eldeco Group, we will focus on meeting the increasing demand for high-quality low-rise and plotted development at affordable prices."

This is in line with HDFC Capital’s strategy of partnering with top-rated developers to increase the supply of affordable and mid-income housing in India while ensuring quality and timely construction, he added.

Pankaj Bajaj, Chairman of Eldeco Group, said there has been an upsurge in demand for plots and low-rise development in gated townships after the pandemic, with most players in this segment reporting robust sales.

"We are present in 15 cities of north India and everywhere we are facing inventory shortage," Bajaj said.

Established in 1985, Eldeco Group is a North India-focused real estate developer with strong presence in Tier 2 cities.

The group operates in Lucknow through the BSE listed entity Eldeco Housing and Industries Limited (EHIL) and in rest of the cities through the closely held Eldeco Infrastructure and Properties Limited (EIPL).

The company has delivered 175 projects with approximately 30 million square feet of real estate development. Besides these, the Group has 30 projects with 35 million sq ft in various stages of execution.

HDFC Capital Advisors Limited, a 100 per cent subsidiary of HDFC Limited, provides investment management services for real estate private equity financing and is one of the largest fund managers in the country.

The company is the investment manager to HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) and HDFC Capital Affordable Real Estate Fund 2 (H-CARE 2), both SEBI registered Category II Alternative Investment Funds.

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).

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Published on: Tuesday, August 24, 2021, 03:53 PM IST
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