Arvind SmartSpaces, HDFC Capital to create Rs 900-crore fund for housing projects

August 14, 2022

Ahmedabad, Aug 13 Real estate developer Arvind SmartSpaces Ltd will create Rs 900-crore residential development platform with HDFC Capital Advisors, who will be the Investment Manager of the fund.

Theboard has approved HDFC Capital Affordable Real Estate Fund – III (HCARE – 3), which will be used for acquisition of new projects for residential development in Ahmedabad, Bengaluru, Pune and MMR.

ASL will invest Rs 300 crore in the platform and HCARE-3 Rs 600 crore, thereby, strengthening the strategic partnership between ASL and HDFC Capital Advisors, a statement said.

Part of the Ahmedabad-based Lalbhai Group, Arvind SmartSpaces had partnered HDFC Capital Advisors in 2019 to manage the Affordable Real Estate Fund 1 (HCARE 1), to develop affordable and mid-income housing projects.

Arvind SmartSpaces will set up a separate special purpose vehicle (SPV) to house projects under this platform.

The platform will have an overall revenue potential of Rs 4,000-5,000 crore, excluding reinvestment potential, it said.

Kulin Lalbhai, Director, Arvind SmartSpaces said: “We are constantly exploring sources of capital to augment the project pipeline and overall growth. The proposed Rs 900-crore platform with HDFC Capital was approved by the board today, and will help exponentially grow our footprint in targeted geographies and, in turn, is expected to create value for stakeholders.”

“This platform builds upon the success of the previous platform set up with HDFC Capital in 2019 and triples our capital investment abilities in the short-term,” he said.

Kamal Singal, Managing Director and CEO of Arvind SmartSpaces, said, “We are already at an advanced stage of finalisation of two projects and we expect 4-5 more such projects within the platform over the next 12 months.”

Arvind SmaratSpaces posts Rs 7.2-cr net in June quarter

Arvind SmartSpaces Ltd also announced its financial results for the quarter ended June 30, 2022.

The company’s consolidated net profit for the quarter increased to Rs 7.2 crore as against Rs 2.5 crore in the same quarter last year. Revenue from operations grew to Rs 60 crore as against Rs 27 crore in the same quarter last year.

Consolidated EBITDA for the quarter grew by 31 per cent year-on-year to Rs 11 crore as against Rs 8 crore in the comparable quarter last year.

Published on

August 13, 2022

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