New Delhi, Nov. 27 -- HDFC Capital Advisors Ltd, the real estate private equity arm of HDFC Group, has created a Rs 1,000 crore ($112 million) platform in partnership with Hero Realty Pvt Ltd, the property development arm of Hero Enterprise, to develop housing projects, the companies said in a statement.
The platform will focus on mid-income housing projects across Tier 1 and Tier 2 cities in the country, according to the statement.
Vipul Roongta, managing director and CEO at HDFC Capital, said the company sees "tremendous potential" in Tier 1 and Tier 2 cities, where infrastructure growth and rising aspirations are driving demand for mid-income housing. "This collaboration will enable housing development in towns that are well-connected and are extensions of major metros which serve as employment hubs," he said.
The platform is the latest initiative by HDFC Capital, which has created a $4.5-billion pool of money across various investment funds, targeting the development of mid-income housing in India.
Hero Realty, founded in 2006, has delivered more than 8.4 million sq. ft. of residential developments and 200 acres of industrial parks. The company has five projects under development with 6.4 million sq ft of potential and an additional 8.0 million sq ft across five projects in the pipeline. It has presence across the national capital region, Punjab and Uttarakhand.
"With this partnership with HDFC Capital, we will be able to scale faster into Tier 1 and Tier 2 cities, addressing the significant unmet demand for mid-income housing while delivering on our promise of superior living experiences," said Rohit Kishore, chief executive officer, Hero Realty.
Published by HT Digital Content Services with permission from VC Circle.