Arvind Smart Spaces Arvind SmartSpaces inks agreement with HDFC CapitalAdvisors
Ahmedabad: Leading real estate developer Arvind Smart Spaces Ltd (BSE: 539301 NSE: ARVSMART,ISIN: INE034S01021, ASL), part of the Lalbhai Group, said it has signed an agreement with HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3) for the creation of residential development platform with a revenue potential of upto Rs 5000 crore, the company said Wednesday.
This follows an earlier announcement of the board approval for the same on Aug 12, 2022.
ASL, which has a growing presence in Bengaluru and Pune, has incorporated a wholly owned subsidiary named ‘Arvind Smart Homes Private Limited’ to house the projects to be acquired under this platform wherein Arvind SmartSpaces Limited (as promoter) and HDFC CapitalAdvisors as Investment Manager of HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3), shall make investments of Rs 300 crore and Rs 600 crore respectively from time to time for acquisition and construction of real estate projects in India, according to the statement.
ASL’s strategic alliance with HDFC Capital Advisors began in the year 2019.
ASL had entered a strategic partnership with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) — a fund managed by HDFC Capital Advisors Limited, a subsidiary of HDFC Ltd.
The partnership was set-up with a focus on the development of affordable and mid-income housing projects in India.
The relationship further deepened in 2021, with a Preferential issue to HDFC Capital Advisors wherein H-CARE 1 subscribed to 8.8 percent equity stake inASL on a fully diluted basis.
Two of India’s most trusted brands-HDFC & Arvind together are committed to unlock tremendous value for its stakeholders through this new initiative.
The platform will create overall revenue potential of upto Rs 5000 crore excluding reinvestment potential. Over the next 12 months, 6-7 projects are expected to be acquired through this platform.
HDFC CapitalAdvisors Limited MD & CEO Vipul Roongta said, "Our partnership with ASL will focus on the development of high-quality housing.This is in line with HDFC Capital's strategy of partnering with top rated developers with a strong track record of development and delivery. We particularly like Arvind SmartSpaces’ capital efficient land sourcing strategy and the strong brand affinity it enjoys with its customers and stakeholders."
Arvind SmartSpaces Non-Executive Director Kulin Lalbhai added “With increased consolidation and formalisation of industry, the Indian real estate market presents a tremendous opportunity. The sizable funds being invested by this platform bring in an orbital change in the scale of operations and the new project pipeline of the company. I am sure this platform along with the Arvind SmartSpaces team will ensure our Company’s sustained success and lead it to newer heights.”
Arvind SmartSpaces MD & CEO Kamal Singal added “We are delighted to deepen our partnership with HDFC. Apart from the precious patient capital, HDFC brings in extensive experience in residential real estate. The platform structure not only de-bottlenecks capitalization at the Company level,but it also has enough flexibility inbuilt to ensure that long-term patient capital is made available to the business while efficiently optimizing the balance sheet risk. The partnership leverages our efforts to take on bigger scale projects".
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