HDFC Capital and L&T Realty Are in Discussions to Establish INR 4,000-crore Investment and Development Platform

According to people with direct knowledge of the development, mortgage lender Housing Development Finance Corporation's (HDFC) private equity real estate arm HDFC Capital Advisors and engineering major Larsen & Toubros' property development company L&T Realty are in advanced talks to establish a Rs 4,000 crore residential development and investment platform.

The collaborative platform will be organised as an Alternative Investment Fund (AIF) and would invest in mid-market residential developments around the nation.

HDFC Capital Advisors and L&T Realty will invest equity in this platform, and the developer will be responsible for the execution of the joint venture's investments.

The debate has proceeded to a point where a decision on the size of the respective equity infusions by HDFC Capital and L&T Realty is expected to be made shortly, according to one of the individuals cited above.

After factoring in the actual equity injection by HDFC Capital and L&T Realty, the investment platform will raise the capital from the markets.