An alternative investment fund sponsored by Housing Development Finance Corp (HDFC) is close to investing about 110 crore in a project of Keystone Realtors at Virar near Mumbai, if inside sources are to be believed.
According to the deal, HDFC Capital Affordable Real Estate Fund will acquire a minority stake in the Virar project of Keystone Realtors, which builds residential projects under the Rustomjee brand. The concerned authorities have also divulged that the investment is in part equity and part debt. A few affordable housing projects have come up lately that provide opportunities and this particular project is set to generate healthy returns. This is slated to be one of the key investments this year for the Vipul Roongta-headed fund, which closed in January last year. HDFC Capital Advisors is the investment manager for the fund. It has a long-term view with an investment cycle of 12 years.
Officials of the department have stated that the fund could be expecting a return upwards of 20% from the project. Roongta and Keystone Realtors didn’t respond until press time to emails seeking comment. HDFC Capital Affordable Real Estate Fund has been scouting for investment opportunities in the affordable housing segment. In 2016, it invested around Rs. 350 crore in three projects of Mumbai-based real estate developer Ahuja Constructions. The fund has also invested around 500 crore in a project of the Acme Group.
