HDFC Capital Invests In Runwal Group’s Housing Project

HDFC Capital Advisors, the wholly-owned non-public fairness arm of India’s largest mortgage lender, has invested Rs 375 crore in realty developer Runwal Group‘s mid-income and affordable housing project Runwal Avenue in Mumbai’s japanese suburb of Kanjur Marg. The fund has made this funding although a mezzanine fairness construction. Around Rs 210 crore of this quantity will probably be utilised to offer full exit to Piramal Capital, present lender of the project, whereas steadiness will help building of the project. Runwal Avenue is a Greenfield project unfolding over a complete 6 acres with complete potential of 1.7 million sq ft saleable area growth. Piramal Fund Management had invested in the project on the land acquisition stage and is now exiting the funding. The developer had lately pre-launched the project in mid-December and has achieved gross sales of over 150 residences. The project gives residences configurations of as much as 3 bedrooms priced in the vary of Rs 1 crore to Rs 1.5 crore. The project is predicted to be accomplished in 4 years from now. HDFC Capital Advisors has made this new funding in Runwal Avenue by means of its affordable and mid-income housing funding platform HDFC Capital Affordable Real Estate (H-CARE) that counts Abu Dhabi Investment Authority, the sovereign wealth fund of the Gulf emirate, and India’s sovereign fund, the National Investment & Infrastructure Fund, as principal buyers. The funding additionally underlines that liquidity is on the market for builders with established observe file and for right-priced merchandise. HCARE, arrange in 2017, is now one of many largest residential funds in mid revenue and affordable housing area and has dedicated greater than Rs 7,000 crore throughout over 25 investments in affordable housing tasks in India. HDFC Capital runs one of many largest institutional funds in the residential housing phase and has raised over $1.25 billion by means of two of its funds H-CARE 1 and H-CARE 2. The main goal of this platform is to offer long run, fairness and mezzanine capital, to builders with execution observe file, on the land and pre-approval stage for the event of affordable and mid-income housing in India. It is aiming to push established grade A builders in direction of affordable and mid-income housing tasks as it will guarantee not solely elevated provide but additionally help the much-needed high quality of building.