New Delhi, Feb 8 (PTI) Realty firm Prestige Estates Projects has partnered HDFCs arm HDFC Capital Advisors to set up Rs 2,500 crore fund to develop affordable and mid-income housing projects across the country.
This platform would enable Prestige group to develop projects worth Rs 10,000 crore.
Bengaluru-based Prestige group is one of the leading real estate developers in the country, while HDFC Capital Advisors provides investment advisory services for real estate private equity financing.
Prestige Estates Projects announced that it has "entered into a strategic partnership with HDFC Capital Advisors for furthering its business in the mid-income/affordable housing sector."
"This dedicated real estate platform shall have a capital to the tune of Rs 2,500 crore, which shall be a blend of equity and debt," Prestige said in a statement.
With the help of this fund, Prestige said it would expand residential business by identifying strategic land with the potential of developing large-scale residential projects in the mid-income segment.
Commenting on the tie-up, HDFC MD Renu Karnad said: "Affordable housing has become the new mantra in the country and also a growth driver for the real estate sector. Our association with Prestige group is to develop affordable homes and cater the largely unmet demands in the mid-income segment."
Prestige group CMD Irfan Razack said: "With this partnership, we are poised to grow manifold, and it will help us continue to build on the legacy of trust and efficacy that we are known for."
Terming this platform "very pivotal venture", Razack said it would create value, especially, given the brand names of both Prestige and HDFC.
"Our endeavour is to scale up our residential platform, especially in the affordable housing sector that has picked up huge demand and is currently vacuumed of supply and we are positive that this platform will facilitate long-term, sustainable value creation," he added.
Prestige group CEO Venkat K Narayana said: "After having successfully aligned our business along streamlined verticals, viz residential, commercial, retail and hospitality, we have come across exceptional proposals and remarkable opportunities".
This platform can spawn a property development worth Rs 10,000 crore, he added.
This capital would enable the company to strengthen presence in the geographies it operates in and also expand into different geographies for tapping new growth markets enjoying high demand across the country.
Prestige has operations across south India, Pune, Goa and Ahmedabad. It has completed 212 real estate projects with developable area of over 81 million sq ft.
It has 51 ongoing projects across segments, with total developable area of 53 million sq ft. It also has 48 million sq ft of upcoming projects and holds a land bank of 424 acres with potential developable area of over 42 million sq ft.
The consolidated turnover of the company was Rs 4,862 crore last fiscal.
In December 2017, HDFC Capital Advisors had announced raising of USD 1 billion to create a real estate fund that would invest in affordable and mid-income housing projects in the top 15 cities of the country. PTI MJH ANU