The special situations platform intends to partner with quality developers and provide capital solutions to expedite project construction and completion.
HDFC Capital Advisors Limited (HDFC Capital) and an affiliate of Cerberus Capital Management, LP (Cerberus) have partnered to create 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 platform was developed in response to a series of shocks to the Indian residential real estate market that created a significant need for capital. Not only have buyers become unwilling to fund projects in advance of completion, but traditional financing channels have also come under immense pressure.
The special situations platform intends to partner with quality developers and provide capital solutions to expedite project construction and completion.
Deepak Parekh, Chairman, HDFC Ltd, said: “Lack of buyer confidence in the ability of developers to complete projects combined with a slow-down in funding for real estate projects resulted in developers being starved of capital to complete on-going projects. This Platform, in partnership with Cerberus, has the potential to provide an impetus to the real estate sector by providing capital solutions to developers and restarting stalled housing projects.”
Frank Bruno, Co-Chief Executive Officer, Cerberus, said: “Together with HDFC Capital we look forward to supporting high-quality developers and leading projects in one of India’s most important sectors.”
