Eldeco Instructure and Properties Ltd (EIPL), a privately-held company of the Eldeco Group, has partnered with HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3), a fund managed by HDFC Capital, for an investment of Rs 350 crore to create a platform to develop multiple residential projects across multiple cities. Currently, Eldeco has identified four residential developments in the Tier 2 cities of NCR, Himachal Pradesh and Uttarakhand for an initial investment of Rs 175 crore.
In the previous year, the Eldeco Group had partnered with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1), another fund managed by HDFC Capital, to set up a Rs 150-crore platform for development of low-rise and plotted development projects.
The first project under this platform, ‘Eldeco Paradiso’, a 35-acre plotted project in Panipat, was launched in late March this year. The project received an overwhelming response with the launched inventory being fully sold within the first few days of the launch.
Commenting on the alliance, Pankaj Bajaj, Chairman, Eldeco Group, said, “We are glad to further build upon our longstanding partnership with the HDFC Group. Eldeco is now present in more than 15 cities in North India, including Lucknow, through our listed entity – Eldeco Housing and Industries Ltd (EHIL). We believe that the entire North India belt is starved of quality real estate, especially housing. This new platform will help us serve this unmet demand in multiple cities in North India.”
Vipul Roongta, MD & CEO of HDFC Capital Advisors Ltd, said, “We are committed to strengthening our partnership with trusted real estate developers with an established track record in development and delivery of real estate projects. We believe Tier-2 cities offer a significant opportunity for development of branded, high quality residential projects that will cater to the burgeoning demand for housing fuelled by the social and economic transition in these cities. Our partnership with Eldeco will help the group expand its footprint in Tier 2 cities across North India by providing capital for the development of quality real estate developments.”