HDFC Realty Acquire Stake In Homekraft To Develop Affordable Housing
HDFC Realty fund has acquired a significant minority stake in Noida-based ATS group firm HomeKraft and will create a $300 million corpus to develop affordable and mid-income housing projects.
In March this year, ATS group founder launched a new venture HomeKraft to develop mid-income and affordable housing projects in a price range of Rs 3-7 million. HomeKraft has diluted a significant minority equity stake to HDFC Capital Affordable Real Estate Fund, a fund managed by HDFC Capital Advisors, according to a joint press release.
The investment by the Fund in HomeKraft is one of the rare entity level equity investments in the real estate sector, it added. HomeKraft will invest over $300 million for development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds, the statement said.
The affordable housing segment is expected to see healthy growth going forward given the impetus provided by the government through various incentives and subvention scheme, HDFC MD said.
In December last, HDFC Capital announced raising of $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. HDFC Capital Advisors is a 100 per cent subsidiary of HDFC Ltd.
HomeKraft is looking to block sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of $600-750 million. All apartments under this brand would qualify under the PMAY scheme, wherein, various concessional government schemes like interest subvention under CLSS, concessions on GST, etc. would be available.
ATS has completed nearly 30 million square feet of residential space and 40 million square feet is under construction.
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