Exclusive: HDFC Capital Affordable Real Estate Fund invests about Rs 560 crore in housing project by CCI Projects in Mumbai

The investment will be utilised for paying off the current debt and as working capital for development of upcoming phases, the sources said, adding the working capital is to be invested in tranches.

HDFC Capital Affordable Real Estate Fund has invested close to Rs 560 crore in a housing project being developed by CCI Projects (CCIPPL), an associate company of Cable Corporation of India, sources in the know told Moneycontrol.

The investment will be utilised for paying off the current debt and as working capital for development of upcoming phases, the sources said, adding the working capital is to be invested in tranches.

The housing project, named Rivali Park Wintergreen, is a high-rise apartment complex on the Western Express Highway, Borivali. The funds will be deployed for the second and subsequent phases of the project. The first phase has already been delivered.

Emails have been sent to HDFC Capital and CCI Projects for comments. This story will be updated when the replies are received.

Rivali Park comprises 2 BHK and 3 BHK units spread across six acres admeasuring around 1.7 million square feet (msq) of carpet area. The second phase will comprise close to 2,000 units. The project was launched in May, and the units are priced at Rs 1.4 crore onwards, sources said.

In 2021, Finance Minister Nirmala Sitharaman had handed over possession to 640 homebuyers of the first stalled project completed with funding by SWAMIH Fund managed by SBICap Ventures Ltd. Rivali Park Wintergreen was the first investment by the fund and also the first project to be completed. It is a large project consisting of 708 units of various configurations spread over seven acres.

HDFC Capital Advisors Limited (HDFC Capital), a subsidiary of HDFC Ltd, is the real estate private equity financing arm of HDFC Group. Set up in 2016, HDFC Capital is aligned with the Government of India’s goal of increasing the housing supply in the country, and support the Pradhan Mantri Awas Yojana ― ‘Housing for All’ ― initiative.

The company manages three funds that are registered with the Securities and Exchange Board of India (SEBI) as Category II Alternative Investment Funds (AIFs). HDFC Capital provides early-stage funding for greenfield projects and flexible capital for distressed projects. It manages funds in excess of Rs 20,000 crore.

In May 2022, HDFC Ltd sold 10 percent of the fully diluted paid-up share capital of HDFC Capital to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). ADIA is also an investor in the AIFs managed by HDFC Capital.

In January this year, HDFC Capital Advisors Ltd marked the initial close for Scheme 2 of the HDFC Capital Affordable Real Estate Fund – 3 (H-CARE 3) at $376 million. This was the fourth fund raised by HDFC Capital for investment in affordable housing.