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HDFC Capital, Tribeca set up Rs 500 crore residential development platform

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MUMBAI: HDFC Capital Advisors, the real estate-focused fund management arm of HDFC Ltd and property developer Tribeca have set up a platform to develop mid-income housing projects in Mumbai and Delhi-National Capital Region (NCR). The platform will invest Rs 500 crore through a combination of debt and equity into projects that Tribeca will develop.

Tribeca is known for branded residential business through a partnership with the Trump Organization in India that account for the largest number of Trump branded properties outside of North America.

Already, HDFC Capital Advisors has invested Rs 135 crore in the first project in this platform, a one million sq ft residential project in Gurgaon that will be developed by Tribeca. The project comprises 600 homes in low-rise and mid-rise blocks around a four-acre central forest.

“Housing remains a crucial need in India and the demand for housing is expected to grow substantially with increased urbanisation. HDFC’s endeavour is to participate in the huge opportunity of mid-income and affordable housing in the country,” said HDFC chairman Deepak Parekh. “We are committed to partnering with developers who are aligned with our vision and values.”

The platform aims to leverage the latter’s asset light model of acquiring projects from existing developers through structures of joint venture and development management agreements.

“We are excited to have HDFC’s support at this opportune time when India’s residential sector is witnessing significant consolidation,” said Kalpesh Mehta, Founder of Tribeca. “This partnership helps us materially scale up our business and gets us closer to our vision of building a product and customer-centric residential brand.”

HDFC Capital Advisors manages two affordable housing funds – HDFC Capital Affordable Real Estate Fund I and II – which collectively have a corpus of around $1 billion. The company recently said it will use the two funds to create a $1 billion platform to target affordable and mid-income residential projects in India’s top 15 cities.

“Tribeca is a new age developer that is bringing a fresh perspective to this industry. We are looking forward to back them to create what we believe will become a scalable platform,” said Vipul Roongta, managing director of HDFC Capital Advisors.

Currently, Tribeca is developing five projects with a total value of Rs 6,500 crore across Mumbai, NCR and Kolkata. Ends

Source: Economic Times