Arvind SmartSpaces Ltd to form residential development platform with HDFC Capital Advisors

Arvind SmartSpaces Limited ("ASL"), a part of the Lalbhai group, headquartered in Ahmedabad, one of India's leading Real Estate developers, announced that its Board has approved the creation of Rs. 900 Cr residential development Platform with HDFC Capital Advisors as Investment Manager of HDFC Capital Affordable Real Estate Fund - 3 ("HCARE - 3").

The proposed investments from ASL and HCARE-3 will be Rs. 300 Cr and Rs. 600 Cr respectively in the platform. The funds will be utilised for acquisition of new projects for residential developments in the cities of Ahmedabad, Bangalore, Pune and MMR. ASL will set up a separate SPV to house the projects under this Platform. The Platform will create overall revenue potential of Rs. 4000-5000 Cr excluding reinvestment potential.

This will further strengthen the strategic partnership between ASL and HDFC Capital Advisors.

Commenting on the strategic development, Mr. Kulin Lalbhai, Director, Arvind SmartSpaces said "We are constantly exploring innovative sources of capital to augment project pipeline and overall growth. The proposed Platform with HDFC Capital for Rs. 900 Cr approved today by the Board, will help exponentially grow our footprints in targeted geographies and in-turn expected to create significant value for stakeholders. This Platform builds upon the success of the previous Platform with HDFC Capital set up in 2019 and triples our capital investment abilities in the short term."

Mr. Kamal Singal, Managing Director and CEO of Arvind SmartSpaces added "The proposed partnership is expected to give ASL significant headroom to capitalise on the growth opportunities in our focussed markets. We are already at advanced stages of finalisation of two projects and we further expect 4-5 more such projects within the platform over the next 12 months. The platform is expected to generate significant upside to ASL project pipe line while efficiently managing risk profile of the balance sheet."

Shares of Arvind SmartSpaces Limited was last trading in BSE at Rs. 189.65 as compared to the previous close of Rs. 185.45. The total number of shares traded during the day was 21681 in over 357 trades.

The stock hit an intraday high of Rs. 191.00 and intraday low of 182.70. The net turnover during the day was Rs. 4092125.00.

Source : Equity Bulls

Keywords

ArvindSmartSpaces INE034S01021 HDFCCapitalAdvisors ResidentialDevelopmentPlatform