Mahindra arm, HDFC Cap to make affordable homes

New Delhi:

Mahindra Lifespace Developers

(

MLDL

), the real estate development arm of the

Mahindra Group

, has partnered with

HCARE-1

fund, managed by

HDFC Capital Advisors

, a wholly owned subsidiary of HDFC, to develop affordable housing projects in the country.

According to a statement, the 51:49 joint venture company Mahindra Happinest Developers (MHDL) between MLDL and HDFC Capital will develop affordable housing under the brand name of Happinest. The group is planning to develop 10,000-20,000 housing units of around 500-sqft size. HCARE-1 has a corpus of Rs 2,700 crore from global investors.

Vipul Roongta, CEO, HDFC Capital Advisors, 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.’’

Anita Arjundas, MD, MLDL, said, “the venture 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.”

MLDL has been present in the affordable housing segment since 2014. Over 1,600 units have been launched across the company’s ongoing affordable housing projects in Chennai (Happinest, Avadi) and Mumbai (Happinest, Boisar), with close to 1,000 homes already handed over.

Housing units of MLDL are currently priced between Rs 17 lakh — Rs 27 lakh, and offer strategic connectivity and community living options.

Under the flagship program “Housing for all by 2022” of Prime Minister Narendra Modi, the union government is offering a number of benefits to buyers and developers of affordable houses. Under the Prime Minister Awas Yojana (PMAY), a first-time buyer of a house gets around Rs 2.40 lakh as interest subsidy on home loan. The demand for affordable housings are on rise.


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