Arvind Smartspaces and HDFC Capital Fund partner for real estate development projects; stock zooms ~5%

24 Aug 2022 , 09:40 AM

Arvind SmartSpaces Limited, a subsidiary of the Lalbhai Group and a leading Ahmedabad-based real estate developer with a growing presence in Bengaluru and Pune, has announced the signing of an agreement with HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3) for the creation of a residential development platform with a revenue potential of Rs5,000 crore.

This follows an earlier statement of Board approval on August 12, 2022.

Arvind SmartSpaces Limited (as a promoter) and HDFC Capital Advisors as Investment Manager of HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3) will make investments of Rs300 crore and Rs600 crore, respectively, from time to time for the acquisition and construction of real estate projects in India through their wholly owned subsidiary Arvind SmartHomes Private Limited.

The strategic partnership between ASL and HDFC Capital Advisors commenced in 2019. ASL formed a strategic alliance with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), which is managed by HDFC Capital Advisors Limited, a subsidiary of HDFC Ltd.

The collaboration was formed with the goal of developing pocket-friendly and middle-income housing projects in India. In 2021, the partnership was strengthened further through a Preferential issuance to HDFC Capital Advisors in which H-CARE 1 subscribed to an 8.8% equity share in ASL on a fully diluted basis.

Through this new effort, two of India’s most trusted companies, HDFC and Arvind, are committed to unlocking significant value for their stakeholders.

The Platform has an overall income potential of up to Rs5,000 crore, excluding reinvestment. This platform is projected to acquire 6-7 projects during the following 12 months.

At around 9.45 AM, Arvind SmartSpaces was trading 4.77% higher at Rs227.20, against previous close of Rs216.85 on NSE.