HDFC Capital, the private equity arm of the HDFC Group, has partnered with real estate developer Runwal Enterprises to establish a Rs 11.5 billion platform dedicated to affordable, mid-income, and upper mid-income residential projects across Mumbai. HDFC Capital’s investment will drive sustainable housing developments aimed at addressing the city’s rising demand for quality, accessible homes. The partnership is expected to generate a revenue potential exceeding $1 billion.

"HDFC Capital is committed to long-term partnerships with proven developers like Runwal Group to meet the growing need for affordable and sustainable housing in India,” said Vipul Roongta, Managing Director & CEO of HDFC Capital. The firm will contribute both equity and structured debt to support Runwal Enterprises, enhancing the developer’s capacity to undertake diverse projects throughout the Mumbai Metropolitan Region (MMR).

Runwal Enterprises, led by Subodh Runwal, expressed enthusiasm for the partnership, noting that it offers long-term, flexible funding to support expansion across various parts of the metropolis and for different socio-economic groups. "This collaboration will significantly boost the scale of our operations," Runwal added.

The funding will support Special Purpose Vehicles (SPVs) for land acquisition and working capital, helping the Runwal Group pursue its growth strategy in MMR. Since 2019, HDFC Capital has invested Rs 8.5 billion in Runwal Group projects in Mumbai’s Dombivli and Kanjurmarg suburbs, achieving strong returns upon exit in 2022.

Aligned with the ‘Housing for All’ initiative, HDFC Capital is focused on financing sustainable, affordable housing and aims to drive innovation by investing in technology companies within the real estate sector. Managing four SEBI-registered Category II Alternative Investment Funds, HDFC Capital has created a $4.2 billion platform to support mid-income and affordable housing across India.

Established in 1978, Runwal Group has delivered a diversified portfolio of 65 projects, covering millions of square feet in residential, commercial, and retail developments. This partnership represents a growing trend of platform deals between institutional investors and local developers, where investors leverage developers’ local expertise and project pipelines, while developers benefit from the significant capital required to scale their projects.

(ET)