Real estate developer Arvind SmartSpaces Ltd. (ASL), a part of the Lalbhai Group, said its board has approved the creation of a ₹900-crore residential development platform with HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3) in which HDFC Capital Advisors is Investment Manager.
The proposed investments from ASL and HCARE-3 will be ₹300 crore and ₹600 crore respectively in the platform.
“The funds will be utilised for acquisition of new projects for residential developments in the cities of cities of Ahmedabad, Bengaluru , Pune and Mumbai Metropolitan Region (MMR),” ASL said in a statement.
ASL will set up a separate SPV to house the projects under this platform. The platform will create an overall revenue potential of ₹4,000-₹5,000 crore excluding reinvestment potential, the company said.
“This will further strengthen the strategic partnership between ASL and HDFC Capital Advisors,” it said.
Kulin Lalbhai, director, Arvind SmartSpaces said “We are constantly exploring innovative sources of capital to augment project pipeline and overall growth. The proposed platform with HDFC Capital for ₹900 crore will help exponentially grow our footprints in targeted geographies and in-turn expected to create significant value for stakeholders.
“This platform builds upon the success of the previous Platform with HDFC Capital set up in 2019 and triples our capital investment abilities in the short term,’’ he said.
Mr. Kamal Singal, managing director and CEO of Arvind SmartSpaces added ‘’The proposed partnership is expected to give ASL significant headroom to capitalise on the growth opportunities in our focussed markets.”
“We are already at advanced stages of finalisation of two projects and we further expect 4-5 more such projects within the platform over the next 12 months. The platform is expected to generate significant upside to ASL project pipe line while efficiently managing risk profile of the balance sheet,” he added.