Eldeco raises Rs 275 crore from Tata Capital Housing Finance Ltd
“Apart from tier 2 towns of North India, NCR is a major growth area for us. After the pandemic the demand in housing has recovered and we are seeing good sales across our portfolio. Our focus is to expand our projects across North India and provide quality housing to the mid-income segment,” said Pankaj Bajaj, MD of Eldeco Group. Faizan Haidar 400 words
Eldeco Group has so far delivered 175 projects with approximately 30 million sq ft of real estate development. The fund infused by TCHFL will be used for Eldeco’s two residential mid- income projects in the NCR.
Both the projects have been launched and are currently under construction. The first project is a 2.1 million sq ft project in Noida and the second one is 1.2 million sq ft project in Sohna, Gurugram. Eldeco Group has currently invested Rs 175 crore in both the projects.
“This partnership gives us a great opportunity to serve our customers in NCR markets. We believe that this is a great time to buy a house or leverage real estate assets by using our attractive finance solutions that are tailor made for our customer’s specific requirements,” said Anil Kaul, Managing Director, Tata Capital Housing Finance Limited.
The two projects together have an estimated revenue potential of Rs 1650 crore which is targeted over the next 4 years. The capital raised will enable Eldeco Group to fast-track the construction of the two projects and also pave the way for an exit to its existing investors.
Recently, Eldeco Infrastructure and Properties Limited, part of the Eldeco group, set up a special purpose vehicle with HDFC Capital Affordable Real Estate Fund 1 with an initial investment of Rs 150 crore to develop low-rise, plotted development projects in National Capital Region (NCR).
HDFC Capital Advisors Limited, a 100% subsidiary of HDFC Limited, provides investment management services for real estate private equity financing and manages two real estate funds—H-CARE 1 and H-CARE 2.
The funds combined create a US$1.1 billion platform targeting affordable and mid-income residential projects in India’s leading 20 cities.
Currently, two projects have been identified in Panipat and Faridabad with a combined saleable area of approximately 1.5 million square feet.
Eldeco Group operates in Lucknow through the BSE listed entity Eldeco Housing & Industries Limited (EHIL) and in the rest of the cities through the closely held Eldeco Infrastructure & Properties Limited (EIPL).
The SPV will focus on meeting the increasing demand for high-quality low-rise and plotted development at affordable prices.