Puravankara's Provident Housing in Talks with HDFC Capital for Rs 1,000+ Crore Expansion Investment

3 Nov 2023 , 11:49 AM

Provident Housing Ltd (PHL), a subsidiary of Puravankara Ltd, is in discussions with HDFC Capital Advisors to secure more than Rs 1,000 crore for its expansion plans. The fundraise is expected to be in the form of equity and will be used to develop mid-income housing projects in Bangalore, Chennai, and Hyderabad, as well as explore new markets.

Both parties are actively engaged in discussions, and the fundraising may be finalized in the coming quarters, depending on the terms of the deals.

HDFC Capital Advisors is likely to invest through a new platform with Provident, potentially through HDFC Capital Affordable Residential Property Fund 3, for the implementation of real estate projects.

This investment is anticipated to result in a gross development value (GDV) of over Rs 3,500 crores, with Provident seeking to expand its presence in existing areas and explore new real estate markets.

Provident is also planning to enter new cities like Mumbai and Pune to expand its residential portfolio to over 20 million square feet from the current 13.82 million square feet.

HDFC Capital’s joint platform with TVS Group’s real estate arm and its alliance with Abhinandan Lodha have added to its real estate investment activities.

In 2020, the IFC Emerging Asia Fund invested $76 million in Puravankara Group for its affordable housing projects in India. This investment has enabled Puravankara to enter the Kochi market with a substantial development project.

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