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HDFC Capital has partnered with Runwal Enterprises to develop residential projects for affordable and middle-income families across Mumbai. The collaboration involves an investment of over Rs 1,150 crore and is expected to generate a revenue potential of over USD 1 billion. HDFC Capital will provide a mix of equity and debt, supporting multiple projects in the Mumbai Metropolitan Region. This partnership aligns with HDFC Capital's focus on sustainable housing and innovation, while also contributing to the government's 'Housing for All' initiative.
HDFC Capital, the real estate private equity arm of the HDFC Group, has partnered with real estate developer Runwal Enterprises to create a platform focused on developing residential projects for affordable, mid-income, and upper mid-income families. Under the agreement, HDFC Capital will invest over Rs 1,150 crore to support the development of multiple sustainable housing projects across Mumbai, India's commercial capital. The projects to be developed through this partnership are expected to have a revenue potential exceeding USD 1 billion. Advertisement
Vipul Roongta, Managing Director & CEO of HDFC Capital, stated earlier this week that the firm is dedicated to forging long-term partnerships with leading developers like Runwal Enterprises, which has a proven track record of successful development and delivery. He added that this collaboration aims to address the growing demand for high-quality, sustainable homes for affordable and middle-income families across India.
As part of the strategic funding arrangement, HDFC Capital-managed funds will provide a mix of equity and structured debt to Runwal Enterprises, which is now headed by Subodh Runwal and was formerly known as Runwal Apartments. Subodh Runwal highlighted that the partnership with HDFC Capital will deepen their collaboration, providing flexible, long-term capital to fund their growth and help establish a presence in diverse areas across the city. He emphasized that the funds would greatly expand the scale of Runwal Group's operations.
The capital injected through this platform is expected to support the establishment of Special Purpose Vehicles (SPVs) for land acquisition and working capital across various projects in the Mumbai Metropolitan Region (MMR). The partnership will also provide the Runwal Group with growth capital for new ventures. Since 2019, HDFC Capital has invested Rs 850 crore in two of Runwal Group's projects in Dombivli and Kanjurmarg, suburban areas of Mumbai. The real estate firm successfully exited these investments in 2022, earning strong returns.
HDFC Capital aligns itself with the Indian government's 'Housing for All' initiative, with a clear focus on financing affordable and mid-income homes in a sustainable manner. The firm also aims to drive innovation and the adoption of new technologies within the real estate sector through investments and partnerships with tech companies.
The real estate private equity firm manages four SEBI-registered category II Alternative Investment Funds, which together make up a USD 4.2 billion platform targeting the development of affordable and mid-income housing across India. Runwal Group, founded in 1978, has a broad portfolio of 65 projects spanning residential, commercial, and retail developments, with millions of square feet of development underway.
Platform deals between institutional investors and real estate developers in India have gained momentum, as they allow both parties to benefit from each other's strengths. These collaborations provide institutional investors with access to developers' on-ground expertise and pipeline projects, while developers gain substantial capital to scale their operations and improve liquidity.
This strategic partnership between HDFC Capital and Runwal Enterprises highlights the growing trend of institutional investors collaborating with developers to unlock new opportunities in India's real estate sector. The infusion of capital will not only expand Runwal Group's operations but also contribute to the supply of high-quality, affordable housing in Mumbai. With the backing of HDFC Capital's expertise and resources, the collaboration is set to support the country's housing development goals and drive long-term growth in the real estate market.
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