Arvind Smart Spaces of Ahmedabad Signs a Contract With HDFC CapitalAdvisors of Mumbai

HDFC and Arvind, two of India's most reputable companies, have joined forces to create enormous value for their investors. Lalbhai Group's Arvind SmartSpaces, located in Ahmedabad but expanding rapidly in Bengaluru and Pune, has just signed a deal to create a residential development platform with HDFC Capital Affordable Real Estate Fund - 3 (HCARE - 3), which may generate up to Rs 5,000 crore in income. The Board's approval was previously announced on August 12, 2022.

Arvind SmartSpaces (as promoter) and HDFC CapitalAdvisors (as Investment Manager of HDFC Capital Affordable Real Estate Fund - 3) shall make investments of Rs.300 Cr and Rs.600 Cr respectively from time to time for acquisition and construction of real estate projects in India, and ASL has formed a wholly owned subsidiary named "Arvind Smart Homes Private Limited" to house the projects to be acquired under this platform.

In 2019, ASL and HDFC Capital Advisors formalised their strategic partnership. HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) is a fund managed by HDFC Capital Advisors Limited, a wholly owned subsidiary of HDFC Ltd, and ASL has engaged into a strategic collaboration with HDFC Capital Advisors Limited. The joint venture was established with the goal of creating houses for middle-class Indians at reasonable prices. In 2021, the two entities became even closer when H-CARE 1 subscribed to an 8.8 percent equity investment inASL on a fully diluted basis as part of a preferential issuance to HDFC Capital Advisors.

HDFC and Arvind, two of India's most reputable companies, have joined forces to create enormous value for their investors. The platform might generate up to Rs. 5,000 Cr in income after accounting for reinvestment. Six to seven projects are anticipated to be purchased via this marketplace throughout the following 12 months.

"Our relationship with ASL will concentrate on the creation of high-quality homes,"

This fits perfectly with HDFC Capital's policy of collaborating with only the best developers who have a proven record of success. We're big fans of Arvind SmartSpaces because of its high brand loyalty among consumers and other stakeholders and its cost-effective approach to acquiring property.

"With greater consolidation and formalisation of business, Indian real estate sector gives a big potential," said Kulin Lalbhai, non-executive director at Arvind SmartSpaces. The platform's large investments will have a cosmic impact on the company's operations and new project pipeline. It is my firm belief that the combined efforts of the Arvind SmartSpaces platform and team will guarantee the continued success of our Company and propel us to even greater heights.

Arvind SmartSpaces' MD & CEO Kamal Singal: "We are thrilled to strengthen our cooperation with HDFC. HDFC not only provides valuable patient money, but also vast knowledge and expertise in the residential real estate market. Capitalization bottlenecks are removed at the corporate level, and long-term, patient capital is made accessible to the firm while balance sheet risk is effectively optimised according to the platform's inherent flexibility. Our combined efforts will allow us to embark on more ambitious initiatives thanks to our alliance.

The History of Arvind Smart Spaces

Arvind Smart Spaces was founded in 2009, and in that time we've made a name for ourselves in the competitive real estate market. To that end, they work to provide real estate options that improve people's lives. This is seen in the thorough planning that goes into their projects, the ease with which they do business, and the quality of the finished products. They are artists who gain immense satisfaction from the thrill of the creative process.

With 7 completed projects in its first 8 years of business, the firm has established itself as a major participant in the Indian real estate sector. In a very short amount of time, they've become a dominant player in the residential, industrial, and retail property development markets. After gaining a foothold in Gujarat, Karnataka, and Maharashtra, they want to spread throughout India by establishing offices in key locations.

Among the many accolades bestowed upon Arvind SmartSpaces are "Best Real Estate Company" by India News Gujarat at the Gujarat First Conclave in 2019, "Affordable Housing Project of the Year" at the prestigious Realty Plus Conclave & Excellence Award 2019, "Rising Brands - Real estate" at the Award at The Global Business Symposium in 2018, "Excellence in Upgrading Lifestyle Standards" at the Food and Lifestyle awards organised by MyFM in 2017, and "Luxury Project of the Year

Background on HDFC Capital Advisors

Founded in 2015 as a wholly-owned subsidiary of HDFC Ltd (India's biggest housing finance firm), HDFC Capital Advisors Limited (HDFC CA) is now one of the leading private equity fund managers in the nation, specialising in investment management services for real estate private equity financing.

The HDFC Capital Affordable Real Estate Fund 1 (HCARE-1) and HDFC Capital Affordable Real Estate Fund 2 (HCARE-2) are two SEBI registered Category II Alternative Investment Funds that the business manages investments for.

Together, HCARE-1 and HCARE-2 amount to a US$1.1 billion platform aimed at low- and middle-income housing developments throughout India's top 20 metropolitan areas. Affordable and middle-class housing in India is a top priority, and this platform's principal function is to facilitate the provision of long-term equity and mezzanine funding to marquee developers at the land and pre-approval stage.

HDFC Capital hopes to capitalise on the momentum created by the Centre's urban housing mission, which aims to provide 20 million homes across India, primarily for the economically weaker section and low-income groups over the next five years, and to address the demand-supply gap in affordable housing in India through a combination of I Financing, ii) Partnerships, and iii) Technology.

For an affordable housing project to be economically viable, cost optimization must be executed successfully.

The H@ART (HDFC Affordable Real Estate) Program is funded by HDFC Capital and is designed to increase productivity and decrease expenses by using technologically-based strategies at key points in the construction process. The H@ART Program's ultimate goal is to foster an environment conducive to innovation and collaboration among the many players in the affordable housing market, including builders, IT firms, venture capital firms, entrepreneurs, and academic institutions. The goal of the initiative is to provide guidance, resources, and capital to real estate technology firms who are pioneering game-changing technologies and efficiency within the affordable housing sector.