Arvind SmartSpaces inks agreement with HDFC CapitalAdvisors

Focus on creating Residential Development Platform
· Revenue potential of upto Rs. 5,000 Crores
India, 23rd August 2022: Arvind SmartSpaces Limited(BSE: 539301 NSE: ARVSMART,ISIN: INE034S01021, ASL), part of the Lalbhai Group, a leading Ahmedabad based real estate developer, with a growing presence in Bengaluru and Pune has announced signing of an agreement with HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3) for the creation of residential development platform with a revenue potential of upto Rs. 5000 Cr. This follows an earlier announcement of the Board approval for the same on 12 Aug 2022.

ASL has incorporated a wholly owned subsidiary named ‘Arvind Smart Homes Private Limited’ to house the projects to be acquired under this platform wherein Arvind SmartSpaces Limited (as promoter) and HDFC CapitalAdvisors as Investment Manager of HDFC Capital Affordable Real Estate Fund – 3 (HCARE – 3), shall make investments of Rs. 300 Cr and Rs. 600 Cr respectively from time to time for acquisition and construction of real estateprojects in India.

ASL’s strategic alliance with HDFC Capital Advisors began in the year 2019. ASL had entered a strategic partnership with HDFC Capital Affordable Real Estate Fund 1 (H-CARE 1) — a fund managed by HDFC Capital Advisors Limited, a subsidiary of HDFC Ltd. The partnership was set-up with a focus on the development of affordable and mid-income housingprojects in India. The relationship further deepened in 2021, with a Preferential issue to HDFC Capital Advisors wherein H-CARE 1 subscribed to 8.8% equity stake inASL on a fully dilutedbasis.

Two of India’smost trusted brands-HDFC & Arvindtogether are committed to unlock tremendous value for its stakeholders throughthis new initiative. The Platform will create overallrevenue potential of upto Rs. 5000 Cr excluding reinvestment potential. Over the next 12 months, 6-7 projects are expected to be acquired through this platform.

Mr. Vipul Roongta, MD & CEO, HDFC CapitalAdvisors Limited said “Our partnership with ASL will focus on the development of high-quality housing.This is in line with HDFC Capital’s strategy of partnering with top rated developers with a strong track record of development and delivery. We particularly like Arvind SmartSpaces’ capital efficient land sourcing strategy and the strong brand affinity it enjoys with its customersand stakeholders.”

Mr. Kulin Lalbhai, Non-Executive Director, Arvind SmartSpaces Limitedadded “With increased consolidation and formalisation of industry, Indianreal estate market presents a tremendous opportunity. The sizeable funds being investedby this platform bring in an orbitalchange in the scale of operations and the new project pipeline of the company. I am sure this platform along with the Arvind SmartSpaces team will ensure our Company’s sustained successand lead it to newer heights.”

Mr. Kamal Singal, MD & CEO, Arvind SmartSpaces Limited added “We are delighted to deepen our partnership with HDFC. Apart from the precious patient capital, HDFC brings in extensive experience in residential real estate. The platform structure not only de-bottlenecks capitalization at the Company level,but it also has enough flexibility inbuilt to ensure that long-term patient capital is made available to the business while efficiently optimizing the balance sheet risk. The partnership leverages our efforts to take on bigger scale projects”.

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