Real estate company Arvind SmartSpaces (ASL) has signed an agreement with HDFC Capital Affordable Real Estate Fund to create a residential development platform, with a revenue potential of up to Rs 5,000 crore.
Arvind SmartSpaces (ASL) is the real estate arm of Ahmedabad-based Lalbhai Group while HDFC Capital Affordable Real Estate Fund 1 is managed by HDFC Capital Advisors Limited, a subsidiary of HDFC.
Towards this partnership, ASL and HDFC Capital Advisors will make investments of Rs 300 crore and Rs 600 crore, respectively, for the acquisition and development of real estate projects in India through HDFC Capital Affordable Real Estate Fund. The platform will generate a revenue potential of up to Rs 5,000 crore, excluding reinvestment potential. According to ASL, six to seven projects will be acquired through this platform over the next 12 months.
ASL partnered with HDFC Capital Advisors in 2019 to develop affordable and mid-income housing projects in India. In 2021, a preferential issue to HDFC Capital Advisors was made wherein H-CARE 1 subscribed to an 8.8% equity stake in ASL on a fully diluted basis.
Vipul Roongta, MD and CEO, HDFC Capital Advisors Limited, said that the partnership with ASL will focus on quality housing.
“The sizeable funds being invested by this platform bring in an orbital change in the scale of operations and the new project pipeline of the company,” Kulin Lalbhai, non-executive director, Arvind SmartSpaces Limited, said.
Kamal Singal, MD and CEO, Arvind SmartSpaces Limited, added that the platform structure de-bottlenecks capitalisation at the company level. He said it also has flexibility inbuilt to ensure the availability of long-term patient capital while efficiently optimising the balance sheet risk.
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