HDFC Capital to invest Rs 1,500 cr in 18 Eldeco housing projects

Real estate boost:HDFC Capital, the real estate private equity arm of the HDFC Group, is making a strategic investment of ₹1,500 crore in a joint venture with Eldeco Group to develop 18 residential projects across tier II-III cities in India. These projects span a development area exceeding 10 million square feet, with a "combined revenue potential of about ₹11,000 crore." This collaboration aims to cater to the rising housing demand in smaller towns such as Panipat and Sonipat in Haryana, Ludhiana in Punjab, and other selected locations in Himachal Pradesh and Uttarakhand. "We will be infusing ₹1,500 crore in this joint platform with Eldeco Group," said Vipul Roongta, Managing Director & CEO of HDFC Capital. 

The partnership with Eldeco Group, facilitated through HDFC Capital Advisors Ltd, seeks to leverage the growth in infrastructure and proximity of these towns to major metropolitan areas. "This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India's economic centres. There is a huge unmet demand for quality housing in tier-2 & 3 cities across India." Pankaj Bajaj, Chairman & Managing Director of Eldeco Group, emphasised the importance of this venture, stating, "There is just not enough supply. In this platform with HDFC Capital, we will be able to address some of this demand in cities of North India," Bajaj said.

HDFC Capital's investment aligns with the Government of India's 'Housing for All' initiative, focusing on affordable and mid-income homes. "We are bullish on the potential of tier-2 and tier-3 towns situated within a 300-km radius of major metropolitan areas. Our partnership with Eldeco aligns with our long-term vision of catalysing the development of sustainable aspirational housing for India's expanding middle class," said Roongta.

The partnership underscores Eldeco's successful track record in similar ventures, with HDFC Capital also aiming to promote innovation in real estate through technological partnerships. "Eldeco has a successful track record of developing townships in tier-2 and 3 towns and we're excited to partner with them," Roongta added.