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HDFC arm picks up minority stake in Homekraft

13 June, 2018 6:28 PM
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HDFC Capital Advisors, a 100% subsidiary of mortgage financier HDFC, has acquired a minority stake in real estate developer ATS Group’s Homekraft unit for an undisclosed amount.

Homekraft aims to invest over $300 million for development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds. The focus will be in tier-II and tier-III cities.

The investment is being made by HDFC Capital Affordable Real Estate Fund – a fund managed by HDFC Capital Advisors.

“The affordable housing segment is expected to see healthy growth going forward given the impetus provided by the government through various incentives and subvention scheme,” Renu Sud Karnad, managing director, HDFC, said in a statement.

“HDFC is delighted to partner with a reputed developer like ATS for their foray in this segment and our funds will provide flexible financing to Homekraft to meet its capital requirements and address the demand-supply gap in affordable housing in India,” Ms. Karnad added.

Homekraft is looking to clock sales of 6,000-6,500 units in the next 3-5 years with expected revenue in the range of $600 million - $750 million.

Source: thehindu.com

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