Jerry Rao-backed VBHC Value Homes (previously known as Value & Budget Housing Corporation), a major player in the affordable housing segment, has announced a strategic partnership with Stichting Van Herk Investments, a Rotterdam-based global investment firm. The firm is investing an equivalent of $20 million, the largest investment since the announcement of the new FDI policy in the sector in India. The investment memorandum was signed in the presence of Prime Minister of the Netherlands, Mark Rutte, on June 6.
This is the second round of investment by Van Herk Groep in the company, the first being in July 2014, when Van Herk Groep invested in the equity capital of VBHC. In the current round, the investment covers both developing affordable housing projects and development of affordable serviced apartments for young professionals and industrial workers. This investment will enable VBHC to expand its footprint in India. VBHC will also continue to benefit from the expertise of Van Herk Groep in the residential housing segment.
Jerry Rao, chairman, VBHC Value Homes, said, “There is a huge potential in India for affordable housing, especially the affordable service apartments segment. Through our partnership with Van Herk Groep our objective is to bridge this need gap. We firmly believe that this association will be a perfect marriage of their extensive and global industry knowledge and our vision of delivering world class quality affordable homes. We are proud that Van Herk Groep is a share holder in VBHC.”