Mahindra, HDFC Capital tie up for budget housing

Mahindra LifeSpaces Developers Ltd (MLDL), the real estate arm of Mahindra Group, has partnered with HDFC Capital Affordable Real Estate Fund-1, a fund managed by HDFC Capital Advisors, to offer a platform to develop affordable housing projects.

The platform will develop five-10 million sq ft in various locations selected for its projects, under the Happinest brand. The proposed projects will be undertaken through Mahindra Happinest Developers with a 51:49 share between Mahindra and HDFC Capital. The first project to be undertaken by the joint platform will be Happinest Palghar. The project is expected to be launched in the second half of FY18.

Mahindra has been present in the affordable housing segment since 2014, through its category brand, Happinest. Over 1,600 units have been launched in Chennai (Happinest, Avadi) and Mumbai Metropolitan Region (Happinest, Boisar), with close to 1,000 homes already handed over. Its products are currently priced between ~17 lakh and ~27 lakh, and offer strategic connectivity and vibrant community living options. Anita Arjundas, managing director, MLDL, said, “Affordable housing is a critical component of quality urban infrastructure, as also a growth driver for the real estate industry in India. We are delighted to partner with HDFC Capital which will leverage the experience and commitment of each organisation, to develop affordable homes, creating a sustainable value for our customers, while also addressing the largely unmet demand in this segment. Vipul Roongta, chief executive, HDFC Capital Advisors, said, “The objective of this platform is to invest in budget residential projects by providing long-term equity. Lack of long-term capital is one of the key challenges for the the low- and middle-income groups in India.”

HDFC Capital’s first fund is dedicated to addressing this funding gap by providing long-term equity-oriented capital for developing projects in urban and semi-urban peripheral areas.