Arvind SmartSpaces Ltd inks agreement with HDFC Capital Advisors

Arvind SmartSpaces Limited (BSE: 539301 NSE: ARVSMART, ISIN: INE034S01021, ASL), part of the Lalbhai Group, a leading Ahmedabad based real estate developer, with a growing presence in Bengaluru and Pune has announced signing of an agreement with HDFC Capital Affordable Real Estate Fund - 3 (HCARE - 3) for the creation of residential development platform with a revenue potential of upto Rs. 5000 Cr. This follows an earlier announcement of the Board approval for the same on 12 Aug 2022.

ASL has incorporated a wholly owned subsidiary named 'Arvind SmartHomes Private Limited' to house the projects to be acquired under this platform wherein Arvind SmartSpaces Limited (as promoter) and HDFC Capital Advisors as Investment Manager of HDFC Capital Affordable Real Estate Fund - 3 (HCARE - 3), shall make investments of Rs. 300 Cr and Rs. 600 Cr respectively from time to time for acquisition and construction of real estate projects in India.

ASL's strategic alliance with HDFC Capital Advisors began in the year 2019. ASL had entered a strategic partnership with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) - a fund managed by HDFC Capital Advisors Limited, a subsidiary of HDFC Ltd. The partnership was set-up with a focus on the development of affordable and mid-income housing projects in India. The relationship further deepened in 2021, with a Preferential issue to HDFC Capital Advisors wherein H-CARE 1 subscribed to 8.8% equity stake in ASL on a fully diluted basis.

Two of India's most trusted brands- HDFC & Arvind together are committed to unlock tremendous value for its stakeholders through this new initiative. The Platform will create overall revenue potential of upto Rs. 5000 Cr excluding reinvestment potential. Over the next 12 months, 6-7 projects are expected to be acquired through this platform.

Mr. Vipul Roongta, MD & CEO, HDFC Capital Advisors Limited said "Our partnership with ASL will focus on the development of high-quality housing. This is in line with HDFC Capital's strategy of partnering with top rated developers with a strong track record of development and delivery. We particularly like Arvind SmartSpaces' capital efficient land sourcing strategy and the strong brand affinity it enjoys with its customers and stakeholders."

Mr. Kulin Lalbhai, Non-Executive Director, Arvind SmartSpaces Limited added "With increased consolidation and formalisation of industry, Indian real estate market presents a tremendous opportunity. The sizeable funds being invested by this platform bring in an orbital change in the scale of operations and the new project pipeline of the company. I am sure this platform along with the Arvind SmartSpaces team will ensure our Company's sustained success and lead it to newer heights."

Mr. Kamal Singal, MD&CEO, Arvind SmartSpaces Limited added "We are delighted to deepen our partnership with HDFC. Apart from the precious patient capital, HDFC brings in extensive experience in residential real estate. The platform structure not only de-bottlenecks capitalization at the Company level, but it also has enough flexibility inbuilt to ensure that long-term patient capital is made available to the business while efficiently optimizing the balance sheet risk. The partnership leverages our efforts to take on bigger scale projects".

Shares of Arvind SmartSpaces Limited was last trading in BSE at Rs. 218.70 as compared to the previous close of Rs. 204.80. The total number of shares traded during the day was 9512 in over 326 trades.

The stock hit an intraday high of Rs. 219.95 and intraday low of 197.60. The net turnover during the day was Rs. 2051621.00.

Source : Equity Bulls

Keywords

ArvindSmartSpaces INE034S01021 HCARE3 AffordableRealEsateFund HDFCCapitalAdvisors