HDFC Capital Invests in Shapoorji Pallonji Real Estate Residential Portfolio

BY Realty+

HDFC Capital Advisors, a real estate private equity investment manager owned by mortgage lender HDFC, has invested over Rs 1,550 crore in a portfolio of residential projects of property developer Shapoorji Pallonji Real Estate.

The investment made through structured debt instruments will flow into six projects spread over nearly 7 million square feet in Mumbai and Pune. It will be utilised for the financial closure of projects, repayment of high-cost debt, and working capital, the companies said.

“Our partnership with HDFC Capital Advisors will give us significant headroom to capitalise on growth opportunities in our targeted markets. This partnership will add immense value to our project pipeline and propel our growth further,” said Venkatesh Gopalakrishnan, Chief Executive Officer of Shapoorji Pallonji Real Estate.

Vipul Roongta, Managing Director and CEO of HDFC Capital Advisors, said through its partnership with Shapoorji, HDFC Capital will focus on meeting the increasing demand for high-quality homes for mid-income households in India. “In line with the ‘housing for all’ vision of the government of India, HDFC Capital’s endeavour is to increase the supply of housing in India by providing flexible, long-term capital to leading developers across India,” he said.

All the six projects it has invested are greenfield projects in the mid-income category with some components of premium as well as affordable segments. Of these, one project involves redevelopment of a large housing society in the central part of Mumbai.

Other projects include three plotted developments on the outskirts of Pune and one villa project that is part of the company’s larger layout in Pune’s Hadapsar locality. While all approvals for the central Mumbai project have already been secured, permissions for other projects are expected soon.

Shapoorji Pallonji Real Estate constitutes a significant part of the Shapoorji Pallonji Group, a multi-business conglomerate. With a development potential of over 113 million sq ft, the developer is working on projects in Mumbai, Pune, Bengaluru, Gurgaon, and Kolkata. The company has projects across segments including luxury apartments, aspirational homes for mid-income homebuyers, and mass housing projects.

HDFC Capital, set up in 2016, is the investment manager to HDFC Capital Affordable Real Estate Funds 1, 2 and 3, and is aligned with the government’s ‘housing for all’ initiative. It manages a $3-billion funding platform that has been rated as one of the world’s largest private finance platforms focused on development of affordable housing.

Tags : HDFC Capital Advisors real estate private equity Shapoorji Pallonji Real Estate Venkatesh Gopalakrishnan Chief Executive Officer Shapoorji Pallonji Real Estate Vipul Roongta Managing Director CEO HDFC Capital Advisors