HDFC Capital, the investment management arm of the housing finance company, has partnered with US private equity investor Cerberus Capital Management to take over stuck residential projects and provide last-mile funding.
“Lack of buyer confidence in the ability of developers to complete projects combined with a slowdown in funding for real estate projects has resulted in developers being starved of capital to complete on-going projects,” said HDFC Chairman Deepak Parekh. He added that the joint venture platform can provide an impetus to the real estate sector by restarting stalled housing projects.
Cerberus Co-CEO Frank Bruno said, “We can provide tailored solutions in sectors with dislocated funding channels in various forms, such as the purchase of assets, creation of operating and lending platforms, and provision of structured capital to best-in-class operators.”
HDFC Capital MD and CEO Vipul Roongta said, “HDFC Capital is focused on providing flexible financing solutions to developers in the Indian residential real estate sector.”
Cerberus has been active in India across numerous verticals since 2019. The firm was one of the bidders for Altico Capital, a real estate financier that went bust.