HDFC Capital Advisors Limited, the real estate private equity division of HDFC Group, has announced plans to invest ₹1,500 crore in collaboration with the Eldeco Group, based in Delhi. This partnership aims to develop 18 new projects in Tier 2 and Tier 3 towns, which are projected to generate nearly ₹11,000 crore in revenue, as stated on April 13. The total area for development across these 18 residential projects will exceed 10 million square feet. These projects will be located in various towns, including Panipat and Sonipat in Haryana, Rudrapur in Uttarakhand, Ludhiana in Punjab, Kasauli in Himachal Pradesh, and Rishikesh in Uttarakhand.

Vipul Roongta, Managing Director and CEO of HDFC Capital, expressed optimism about the growth potential in Tier 2 and Tier 3 towns situated within a 300-kilometer radius of major cities. He noted, “Our collaboration with Eldeco aligns with our long-term vision to promote sustainable housing for India’s growing middle class. This partnership aims to capitalize on the increasing infrastructure development in these areas, which is connecting these towns to metropolitan centers and job opportunities“. Eldeco has a proven history of developing townships in these regions, and we are excited to work with them.’ Pankaj Bajaj, Chairman and Managing Director of Eldeco Group, added, “We are pleased to partner with HDFC Capital in our mission to create vibrant, well-planned communities across India. This investment enables us to accelerate our growth in high-potential markets that are becoming more connected to India’s economic hubs”.

There is a significant unmet demand for quality housing in Tier 2 and Tier 3 cities, and this partnership will help us address some of that need in Northern India.’ This collaboration is part of HDFC Capital’s broader strategy to promote affordable and mid-income housing, marking a significant step towards meeting the housing demands in India’s developing regions. The partnership is specifically with Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted branch of the Eldeco Group, which also operates the publicly listed Eldeco Housing & Industries Ltd in the Lucknow market under a brand licensing agreement with EIPL.

As a subsidiary of HDFC Bank Ltd, HDFC Capital is committed to supporting the Government of India’s Housing for All’ initiative, focusing on financing the development of affordable and mid-income homes sustainably. HDFC Capital manages four SEBI-registered Category II Alternative Investment Funds, collectively creating a $4.2 billion platform aimed at developing affordable and mid-income housing in India. Just last month, HDFC Capital invested ₹1,300 crore in a partnership with the real estate firm Total Environment to develop housing projects worth ₹10,000 crore in Bengaluru.

Knowledge Source : https://www.hindustantimes.com/real-estate/hdfc-capital-to-invest-rs-1500-crore-in-a-platform-with-eldeco-group-to-develop-new-projects-in-tier-2-and-tier-3-towns-101744558936817.html