HDFC Capital & TVS Emerald’s JV for plotted development in talks to close three land deals, ET RealEstate

August 27, 2023

<p>Representative Image</p>
Representative Image

HDFC Capital’s Rs 1,000-crore joint platform with Emerald Haven Realty (TVS Emerald) for plotted developments is in talks to close three transactions for land parcels spread over a total 45 acres in Chennai and Bengaluru, said persons with direct knowledge of the developments.

These land parcels in the emerging residential areas of Chennai and Bengaluru will act as the seed assets for the platform that has been set up recently with focus on plotted and low-rise development in the property markets in South India.

In March, the real estate arm of the TVS Group had signed a term sheet with HDFC Capital Affordable Real Estate Fund – 3 to create this platform and the platform has now been set up.

Both the entities have outlined a plan to undertake residential development spread over a total 250 acres in key property markets of south India. This is estimated to have a total development potential of over 5 million sq ft of plotting and low-rise properties.

“The deals for land parcels in south India are currently in the pipeline and are expected to be concluded soon. One of the transactions for a plot in Chennai is finalised and paperwork for this will be completed in the next few days,” said one of the persons mentioned above.

ET’s email queries to HDFC Capital, TVS Emerald and CBRE South India that acted as an advisor for setting up the platform remained unanswered until the time of going to press.

In January, HDFC Capital raised over $376 million or over 3,000 crores under the initial close of its second scheme of the HDFC Capital Affordable Real Estate Fund-3 (H-CARE 3).

HDFC Capital Affordable Real Estate Fund 3 (H-CARE 3) Schemes 1 & 2, are registered with SEBI as a Category II Alternative Investment Funds. These funds combine to create a US$ 3.1 billion platform targeting the development of affordable and mid-income housing in India.

TVS Emerald, an associate of TVS Motor Company, engaged in the business of developing sustainable residential projects and self-sustaining communities with presence in Chennai and Bengaluru. It has delivered about 2.4 million sq ft of residential developments in Chennai and has over 6.25 million sq ft of under development projects.

With considerable traction in demand for plotted developments and independent houses with greater customisation especially after the Covid19 pandemic, corporate and established developers are increasingly foraying into this segment providing more transparency and better options to homebuyers.

This has resulted in an upsurge in plotted development and holiday home projects in peripheral areas of tier I cities and scenic locations in proximity to metro cities.

Corporate developers including Mahindra Lifespaces, The House of Abhinandan Lodha (HoABL), TVS Group, Hiranandani Group, and Arvind Smartsapces have recognized the value in this format and have either entered or planning foray into this segment.

Both realty developers and institutional investors are planning significant investments into this segment given the robust response witnessed to several launches in the last two years.

While the segment was earlier fragmented with smaller developers catering to the demand, entry of established developers along with institutional investors is helping it turn more organized.

  • Published On Aug 21, 2023 at 12:31 PM IST

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Abhay Singh

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