HDFC Capital Affordable Real Estate Fund, a fund managed by HDFC Capital Advisors Ltd, on Wednesday acquired a significant minority equity stake in Noida-based HomeKraft.
The deal will also saw HomeKraft, an ATS Group company, investing over $300 million for development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds.
“HDFC is delighted to partner with ATS for their foray in this segment and our funds will provide flexible financing to HomeKraft to meet its capital requirements and address the demand-supply gap in affordable housing in India," said Renu Sud Karnad, Managing Director, HDFC Ltd.
HDFC Capital Advisors Ltd is a 100% subsidiary of HDFC Ltd.
The HDFC Capital Affordable Real Estate Fund one and two combined will create a $1 billion platform targeting affordable and mid-income residential projects in India’s leading 15 cities.
The primary objective of this platform is to provide long term, equity and capital to developers at the land and pre-approval stage for the development of affordable and mid-income housing in India.
“We are very happy to partner with HDFC Capital to work together to develop homes in affordable and mid income segment under HomeKraft," Getamber Anand, Chairman and Managing Director, ATS Group said.
HomeKraft is expecting sales of 6,000-6,500 units in the next three-five years with expected revenue in the range of
$600-750 million.
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