HDFC Capital, Cerberus set to pair up for $1 billion real estate investment fund
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The fund, to be set up through an affiliate of New York-headquartered Cerberus Capital, will target stressed projects, purchase inventory and provide last-mile funding for under-construction residential projects.
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HDFC Capital and global alternative investment major Cerberus Capital Management LP have formed a partnership to create a fund that will focus on high-yield opportunities in the Indian residential real estate sector. The size of the proposed fund will be upwards of $1 billion, said people familiar with the development.
The fund, to be set up through an affiliate of New York-headquartered Cerberus Capital, will target stressed projects, purchase inventory and provide last-mile funding for under-construction residential projects.
HDFC Capital Advisors and an affiliate of Cerberus Capital Management, L. P. (Cerberus) have partnered to target the creation of a special situations platform (the Platform) focused on high-yield opportunities in the Indian residential real estate sector.
The Platform will seek to purchase inventory and provide last-mile funding for under construction residential projects across India, among other real estate-related opportunities.
The development of the Platform is in response to a series of shocks to the Indian residential real estate market that have created a significant need for capital. Many buyers have been unwilling to fund projects in advance of completion while traditional financing channels have come under severe pressure. The Platform intends to partner with quality developers to provide capital solutions and expedite project construction and completion.
HDFC Capital, Cerberus partner to form special situations platform ANI | Updated: Apr 02, 2021 10:59 IST
The platform will seek to purchase inventory and provide last-mile funding for under-construction residential projects across India among other real estate-related opportunities.
The development of platform is in response to a series of shocks to Indian market that have created a significant need for capital. Many buyers have been unwilling to fund projects in advance of completion while traditional financing channels have come under severe pressure.
The platform intends to partner with quality developers to provide capital solutions and expedite project construction and completion.
HDFC Chairman Deepak Parekh said lack of buyer confidence in the ability of developers to complete projects combined with a slowdown in funding for real estate projects has resulted in developers being starved of capital to complete on-going projects.
The private lender has entered into a share purchase agreement for sale of 100% stake in its subsidiary, Axis Bank UK to OpenPayd Holdings. This transaction is subject to approval by the UK financial regulator, the Prudential Regulation Authority (PRA), the bank said in a BSE filing made after market hours yesterday.
Axis Bank expects to complete the transaction by 30 September 2021. For the transaction, the bank received the completion net asset value (book value of the bank on the date of completion) plus a fixed premium of $5.5 million.
Axis Bank offers the entire spectrum of financial services to customer segments covering large and mid-corporates, msme, agriculture and retail businesses.
April 01, 2021
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HDFC Capital Advisors and an affiliate of Cerberus Capital Management have partnered to target the creation of a special situations platform focused on high-yield opportunities in the Indian residential real estate sector.
“The platform will seek to purchase inventory and provide last-mile funding for under construction residential projects across India, among other real estate-related opportunities,” the companies said in a statement on Thursday.
The development of the platform comes as a response to the series of shocks to the Indian residential real estate market that have created a significant need for capital, it further said, noting that many buyers have been unwilling to fund projects in advance of completion while traditional financing channels have come under severe pressure.