MUMBAI: An alternative investment fund sponsored by Housing Development Finance Corp (HDFC) is close to investing abo . 110 crore in a project of Keysut tone Realtors at Virar near Mumbai, two people with direct knowledge of the matter said.
Under 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, they said.
“The investment is in part equity and part debt,” one of the people said. “There are a few affordable housing projects coming up lately that provide opportunities and this particular project is set to generate healthy returns.”
This will be one of the major 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.
According to the two people, the fund could be expecting a return upwards of 20% from the project. Roongta and Keystone Realtors didn’t respond until press time Wednesday 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 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.