HDFC Invests in 4 Residential Projects
The real estate arm of HDFC Group, HDFC Property Fund is to invest Rs 700 crore in four residential realty projects coming up in Pune, Bangalore, and NCR. HDFC Property Fund has announced that the investment will be made from its second offshore fund worth $250 million (Rs 1,500 crore) and will be used for building 7,000 housing units across these projects with a total sales value of Rs 3,700 crore.
Marquee international institutional investors are a major contributing source for funds that has enabled HDFC to invest in various projects such as Mahagun India developer in NCR Greater Noida area, Paranjape Schemes in Pune, and Embassy Property Development’s Sterling Developers and Vrindavan Tech Village in Bangalore.
Mahagun’s Greater Noida project would be undertaken on 8 lakh square feet, costing Rs 180 crore from the property fund. The 40 lakh square feet Paranjape Schemes project involves an investment of Rs 200 crore, while Vrindavan Tech Village 43 lakh square feet project will require a funding of Rs 220 crore. Lastly, Sterling Project is to receive an investment of Rs 70 crore for developing 5 lakh square feet of project space.
An exclusive development official has stated that the fund expects a 23% internal rate of return and is looking to exit four years from now, when the project achieves a well-balanced stage in 2018. The entire term for the fund is eight to nine years, and HDFC plans to raise Rs 900 crore to add to the already existing amount of Rs 1,500 crore, thereby making it a total fund value of Rs 2,400 crore.
Source: The Hindu Business Line
Bangalore, Embassy Property Development’s Sterling Developers, Greater Noida project, HDFC Group, HDFC Property Fund, NCR, NCR Greater Noida, Paranjape Schemes in Pune, Pune, Vrindavan Tech Village
