Mumbai, October 18, 2017: Mahindra Lifespace Developers Ltd. (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has partnered with HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital) – a fund managed by HDFC Capital Advisors Ltd, a wholly owned subsidiary of HDFC Ltd, to form a Platform focused on the development of affordable housing projects in India. The Platform will look to rapidly scale up in order to address the demand-supply gap in affordable housing in India, with an estimated development footprint of between 5 to 10 million square feet, depending on the locations selected for its projects, under the Happinest name.
The proposed developments will be undertaken through ‘Mahindra Happinest Developers Limited’ (MHDL), with a 51:49 equity share between MLDL and HDFC Capital. The first development to be undertaken by the joint platform will be ‘Happinest, Palghar’, expected to be launched in the H2 of FY18.
MLDL has been present in the affordable housing segment since 2014, through its category brand, Happinest. Over 1,600 units have been launched across the Company’s ongoing affordable housing projects in Chennai (Happinest, Avadi) and MMR (Happinest, Boisar), with close to 1,000 homes already handed over till date. Its products are currently priced between Rs 17 lakh – Rs 27 lakh, and offer strategic connectivity and vibrant community living options. In keeping with MLDL’s focus on sustainable urban development that is resource-conscious and sensitive to the needs of the environment, each Happinest project is certified by the Indian Green Building Council (IGBC), and utilises environment-friendly and energy-efficient materials and technologies to enable balanced and healthy living. Happinest, Avadi has been conferred India’s first IGBC ‘Platinum’ certification for Green Affordable Housing.
Happinest leverages innovative technologies and value engineering approaches to ensure quality and timely construction in a cost-effective manner. MLDL has also focused on creating an ecosystem for access to home finance for its customers in the segment; this includes partnerships with NBFCs that survey the financial capability of prospective customers, and accordingly approve home loans.
Anita Arjundas, Managing Director, MLDL, said, “Affordable housing is a critical component of quality urban infrastructure as also a growth driver for the real estate industry in India. We are delighted to partner with HDFC Capital in a venture that will leverage the experience and commitment of each organisation, to develop affordable homes that will create sustainable value for our customers, while also addressing the largely unmet demand in this segment.
Vipul Roongta, CEO, HDFC Capital Advisors Ltd, said “The objective of this Platform is to invest in residential affordable housing projects by providing long-term equity. Lack of patient long-term capital is one of the key challenges facing growth and development of low and middle-income housing in India. HDFC Capital’s first fund is dedicated to addressing this funding gap by providing long-term equity-oriented capital for development in urban and semi urban peripheral areas. With the affordable housing segment expected to see healthy growth going forward given the impetus provided by the government through various incentives and subventions, this Platform with MLDL is the need of the hour.”