NEW DELHI, Apr 14:  HDFC Capital will invest Rs 1,500 crore in realty firm Eldeco Group’s upcoming 18 housing projects in small towns where it sees huge demand for quality homes.

These 18 housing projects are estimated to generate a total revenue of about Rs 11,000 crore.

HDFC Capital Advisors Ltd, the real estate private equity arm of HDFC Group, has set up a property development  platform in partnership with Delhi-based Eldeco Group. The platform will develop 18 residential projects in tier II-III cities across various states, including Haryana, Punjab, Himachal Pradesh and Uttarakhand.

The total developable area in these 18 projects will be more than 10 million (100 lakh) square feet with a “combined revenue potential of about Rs 11,000 crore”, HDFC Capital said.

“We will be infusing Rs 1,500 crore in this joint platform with Eldeco Group,” said Vipul Roongta, Managing Director & CEO of HDFC Capital.

Eldeco Group will also put in money in this platform.

Last month, HDFC Capital, partnered with realty firm Total Environment to form a Rs 1,300-crore platform for development of about Rs 10,000 crore worth housing projects in Bengaluru.

Commenting on the deal with Eldeco, Roongta said, “We are bullish on the potential of tier-2 and tier-3 towns situated within a 300-km radius of major metropolitan areas. Our partnership with Eldeco aligns with our long-term vision of catalysing the development of sustainable aspirational housing for India’s expanding middle class.”

He noted that the collaboration is aimed at leveraging the growing infrastructure development in these regions, which is bringing these towns closer to the metro cities and employment hubs.

“Eldeco has a successful track record of developing townships in tier II-III towns and we are excited to partner with them,” Roongta said.

The towns where these housing projects will come up include Panipat and Sonipat in Haryana; Rudrapur (Uttarakhand); Ludhiana (Punjab); Kasauli (Himachal Pradesh); and Rishikesh (Uttarakhand).

HDFC Capital noted that this platform underscores the company’s commitment to bridge India’s housing gap through the development of high-quality residential communities, particularly in emerging tier II- III towns.

Pankaj Bajaj, Chairman & Managing Director of Eldeco Group, said, “This investment allows us to accelerate our expansion into high-growth markets that are increasingly being connected to India’s economic centres. There is a huge unmet demand for quality housing in tier II-III cities across India.”

“There is just not enough supply. In this platform with HDFC Capital, we will be able to address some of this demand in cities of North India,” Bajaj said.

The platform with HDFC Capital is with Eldeco Infrastructure & Properties Ltd (EIPL), the unlisted arm of the Eldeco Group.

Promoted by Pankaj Bajaj, the group also operates the listed Eldeco Housing & Industries Ltd, in the Lucknow market under a brand licence agreement with EIPL.

HDFC Capital, a subsidiary of HDFC Bank, said it is focused on financing the development of affordable and mid-income homes in a sustainable manner.

HDFC Capital is also promoting innovation and adoption of new technologies within the real estate sector by investing in and partnering with technology companies.

HDFC Capital is the investment manager to four Sebi-registered Category II Alternative Investment Funds.

These funds combine to create a USD 4.2 billion platform targeting the development of affordable and mid-income housing in India.

Eldeco Group, one of the leading real estate developers in the country, has delivered more than 200 projects with aggregate delivered area of more than 60 million (600 lakh) sq ft.

According to real estate data analytics firm PropEquity, 15 major tier-II cities saw a 20 per cent increase in housing sales last calendar year to Rs 1,52,552 crore from Rs 1,27,505 crore in the preceding year. (PTI)