HDFC Capital acquires stake in ATS’ Home kraft
India’s largest mortgage lender HDFC’s wholly-owned subsidiary Capital Advisors has acquired a minority stake in realty developer ATS Group’s company Home Kraft for an undisclosed amount.
Home Kraft, ATS’ newly formed entity, will be investing over $300 million for development of affordable and mid-income housing across India with a mix of internal accruals, debt and private equity funds, the company said in a release.
The investment by HDFC Capital Affordable Real Estate Fund, a fund managed by HDFC Capital Advisors, in Home Kraft is one of the rare entity level equity investments in the real estate sector.
In December last year, HDFC Capital Advisors Ltd, achieved the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund – 2. This will be combined with the HDFC Capital Affordable Real Estate Fund – 1 raised in 2016 to create a US$1 billion platform targeting affordable and mid-income residential projects in India’s leading 15 cities.