HDFC Capital to Invest Rs 1,500 Crore in Eldeco Group
Betting big on housing demand in smaller towns, HDFC Capital will invest Rs 1,500 crore in Eldeco Group's upcoming 18 residential projects across tier II-III cities with a total revenue potential of about Rs 11,000 crore. The total development area in these 18 projects will be more than 10 million (100 lakh) square feet with a combined revenue potential of about Rs 11,000 crore.
"We will be infusing Rs 1,500 crore in this joint platform with Eldeco Group," says Vipul Roongta, Managing Director & CEO of HDFC Capital.
Last month, HDFC Capital invested Rs 1,300 crore in a platform with realty firm Total Environment for development of Rs 10,000-crore worth housing projects in Bengaluru.
Vipul says, "We are bullish on the potential of tier-2 and tier-3 towns situated within a 300-km radius of major metropolitan areas. Our partnership with Eldeco aligns with our long-term vision of catalysing the development of sustainable aspirational housing for India's expanding middle class."
He noted that the collaboration is aimed at leveraging the growing infrastructure development in these regions, which is bringing these towns closer to the metro cities and employment hubs.
"Eldeco has a successful track record of developing townships in tier-2 and 3 towns and we're excited to partner with them," adds Vipul.
The locations for these housing developments will include Panipat and Sonipat in Haryana; Rudrapur (Uttarakhand); Ludhiana (Punjab); Kasauli (Himachal Pradesh); and Rishikesh (Uttarakhand).
HDFC Capital emphasized that this platform highlights the firm's ongoing dedication to closing India's housing deficit by creating high-quality residential communities, especially in growing tier-II and tier-III towns.
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Pankaj Bajaj, Chairman & Managing Director of Eldeco Group says, "This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India's economic centres. There is a huge unmet demand for quality housing in tier-2 & 3 cities across India."