New Delhi: Arvind SmartSpaces Ltd will set up a Rs 900 crore investment platform with HDFC Capital to develop housing projects across major cities as part of its expansion plans.
In a regulatory filing, Arvind SmartSpaces Ltd (ASL) informed that its Board has approved the creation of the Rs 900 crore 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 crore and Rs 600 crore respectively in the platform," it added.
The fund will be utilised for acquisition of new projects for residential developments in the cities of Ahmedabad, Bengaluru, Pune and Mumbai Metropolitan Region (MMR). ASL will set up a separate SPV (special purpose vehicle) to house the projects under this platform. The platform will create overall revenue potential of Rs 4,000-5,000 crore, excluding reinvestment potential.
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Kulin Lalbhai, Director, Arvind SmartSpaces said: "The proposed Platform with HDFC Capital for Rs 900 crore ... will help exponentially grow our footprints in targeted geographies and in-turn is expected to create significant value for stakeholders." This platform builds upon the success of the previous Platform with HDFC Capital set up in 2019.
Kamal Singal, Managing Director and CEO of Arvind SmartSpaces, said the proposed partnership is expected to give the company significant headroom to capitalise on the growth opportunities in 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," he said.
The company said its sales bookings grew by 8 per cent to Rs 118 crore during the June quarter. The revenue from operations grew to Rs 60 crore in April-June quarter, from Rs 27 crore in the year-ago period, while net profit rose to Rs 7.2 crore, from Rs 2.5 crore. (PTI)
