ATS HomeKraft Repays Rs 1,250 Crore To HDFC Capital's Affordable Housing Fund
The HCARE-2 portfolio with ATS HomeKraft comprised more than 7,500 housing units, with an estimated total sales value of around Rs 8,000 crore.
Realty firm ATS HomeKraft has repaid Rs 1,250 crore to HDFC Capital's property fund, utilising its strong internal cash flows amid strong housing demand.
In a statement on Sunday, ATS HomeKraft said it has repaid Rs 1,250 crore to HDFC Capital Affordable Real Estate Fund 2 (HCARE-2).
The company said it has given the full exit to HDFC Capital's realty fund through cash flows generated entirely from its project portfolio and has not done any refinancing.
The HCARE-2 portfolio with ATS HomeKraft comprised more than 7,500 housing units, with an estimated total sales value of around Rs 8,000 crore.
In 2018, ATS group established 'HomeKraft Infra Private Limited' with equity participation from a fund managed by HDFC Capital Advisors Ltd to develop mid-income projects across Delhi-NCR.
HDFC Capital still holds a minority equity stake in ATS HomeKraft.
'Our partnership with ATS HomeKraft reflects our strong conviction in developers who combine execution discipline with strong consumer traction in the mid-income housing segment. Most projects in this portfolio have appreciated nearly three times from launch price in four to five years, highlighting a large unmet demand for high-quality, mid-income homes,' HDFC Capital CEO and MD Vipul Roongta said.
ATS Group Chairman Getamber Anand said the repayment reinforces the group's commitment to building end-user-focused homes.
The group has recently prepaid Rs 190 crore to the government-backed SWAMIH Investment Fund I for its Dwarka Expressway project, 'ATS Marigold'.
ATS HomeKraft Managing Director Udaivir Anand said the successful exits from both funds reflect strong cash flows arising from timely construction and the group's strengthening balance sheet.
The realtor, which entered the Dwarka Expressway micro-market last year with a mid-income housing project, will launch another project next year backed by a Rs 250-crore commitment from H-CARE 3.
The company has a pipeline of group-housing and plotted developments across North Delhi, Noida, Gurugram, Sohna, Vrindavan and Ghaziabad.
HDFC Capital, a subsidiary of HDFC Bank Ltd, is the real estate private equity arm of the HDFC Group.
HDFC Capital is the investment manager for four SEBI-registered Category II Alternative Investment Funds. These funds combine to create a USD 4.5 billion platform, targeting the development of affordable and mid-income housing in India.
ATS Group is one of the leading real estate developers in North India.
It has completed 25+ residential projects, totalling more than 60 million sq ft.
Additionally, it currently has 24 ongoing projects with a combined saleable area of 30 million sq ft.
