Arvind SmartSpaces Limited (“ASL”), a part of the Lalbhai Group, headquartered in Ahmedabad, one of India’s leading Real Estate Development Company, announced that it has entered into a strategic partnership with HDFC Capital Affordable Real Estate Fund 1(H-CARE 1) – a fund managed by HDFC Capital Advisors Limited, a wholly-owned subsidiary of HDFC Ltd. The partnership will focus on the development of affordable and mid-income housing projects in India while ensuring quality and timely delivery of finished units. The proposed developments will be undertaken by a special purpose vehicle “Arvind Homes Private Limited” set up with an initial investment of Rs. 250 crores.
Ms. Renu Sud Karnad, Managing Director, HDFC Ltd, said “Housing remains a crucial need in India and the demand for affordable housing is expected to grow substantially with increased urbanisation. HDFC’s endeavour is to help address the demand-supply gap in affordable housing in India by providing flexible, long-term capital to leading developers across India. We are committed to partnering with developers like Arvind SmartSpaces who are aligned with our vision and values.”
Mr. Vipul Roongta, MD & CEO of HDFC Capital Advisors Limited added “Our partnership with Arvind SmartSpaces will focus on the development of high quality affordable and mid-income housing in a cost-effective manner. This inline with HDFC Capital’s strategy of partnering with top-rated developers with a good track record of development and delivery and a long-term view of affordable housing.”
Commenting on the strategic alliance, Mr. Sanjay Lalbhai Chairman Arvind SmartSpaces said “We are delighted to have this partnership which will help us boost growth and investments in new projects. We are confident that this joining of hands between the two most trusted names in Indian businesses will create long term value for all the stakeholders. The fresh long term funds being invested by HDFC Capital and Arvind bring in an orbital change in the scale of operations and the new project pipeline of the company. It will also help us continue to build and consolidate on the legacy of trust and excellence that we are known for.’’
Mr. Kamal Singal, Managing Director and CEO of Arvind SmartSpaces added ‘’The proposed structure not only de-bottlenecks capitalization at the Company, but it also has enough flexibility inbuilt to ensure that long-term patient capital is made available to the business without putting undue pressures on its balance-sheet to take care of short and medium business cycles”.