HDFC Capital and Cerberus Partner to Form a Special Situations Platform for the Indian Residential Real Estate Sector

HDFC Capital Advisors Limited ("HDFC Capital") and an affiliate of Cerberus Capital Management, L.P. ("Cerberus") have partnered to target the creation of a special situations platform (the "Platform") focused on high-yield opportunities in the Indian residential real estate sector. The Platform will seek to purchase inventory and provide last-mile funding for under construction residential projects across India, among other real estate-related opportunities.

The development of the Platform is in response to a series of shocks to the Indian residential real estate market that have created a significant need for capital. Many buyers have been unwilling to fund projects in advance of completion while traditional financing channels have come under severe pressure. The Platform intends to partner with quality developers to provide capital solutions and expedite project construction and completion.

"Lack of buyer confidence in the ability of developers to complete projects combined with a slow-down in funding for real estate projects has resulted in developers being starved of capital to complete on-going projects. This Platform, in partnership with Cerberus, has the potential to provide an impetus to the real estate sector by providing capital solutions to developers and restarting stalled housing projects." Said Mr Deepak Parekh, Chairman, HDFC Ltd.

Mr. Frank Bruno, Co-Chief Executive Officer of Cerberus, commented: "Cerberus has a long track record of partnering with businesses and properties around the world. We are able to provide tailored solutions in sectors with dislocated funding channels in various forms, such as the purchase of assets, creation of operating and lending platforms, and provision of structured capital to best-in-class operators. Together with HDFC Capital, we look forward to supporting high-quality developers and leading projects in one of India's most important sectors."

Mr. Vipul Roongta, Managing Director and Chief Executive Officer of HDFC Capital, said: "HDFC Capital is focused on providing flexible financing solutions to developers in the Indian residential real estate sector. Currently, there is a severe shortage of last mile funding for distressed under construction real estate projects of even well-intentioned developers. Our partnership with Cerberus in an important step towards easing financing constraints faced by good developers and projects and will kick start execution of residential real estate projects in India."

Mr. Indranil Ghosh, Head of India and Managing Director at Cerberus, added: "India has one of the fastest growing economies and we see broad opportunities to leverage Cerberus' financial and operating expertise. We are excited to partner with HDFC Capital on this platform and participate in the country's continued development."

Shares of HOUSING DEVELOPMENT FINANCE CORP.LTD. was last trading in BSE at Rs.2530.95 as compared to the previous close of Rs. 2498.95. The total number of shares traded during the day was 151856 in over 9795 trades.

The stock hit an intraday high of Rs. 2538 and intraday low of 2480.45. The net turnover during the day was Rs. 381409863.

Source : Equity Bulls

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