HDFC Capital, the private equity arm of HDFC Group, has announced a partnership with Runwal Enterprises to launch a real estate platform focused on creating affordable and mid-income housing projects. With a commitment of over Rs 1,150 crore, HDFC Capital aims to fuel the development of sustainable residential projects across Mumbai’s metropolitan region, enhancing the availability of quality housing for families of various income levels.
HDFC Capital & Runwal Enterprises to build affordable housing for a billion-dollar future
This strategic collaboration between HDFC Capital and Runwal Enterprises is geared toward addressing the significant demand for quality, sustainable homes. With an estimated revenue potential of over $1 billion, this platform aims to develop residential projects catering to affordable, mid-income, and upper-middle-income families across the Mumbai Metropolitan Region (MMR).
Vipul Roongta, Managing Director & CEO of HDFC Capital, expressed enthusiasm about the partnership, stating, “HDFC Capital is committed to forging long-term partnerships with developers like the Runwal Group, known for its proven track record. This collaboration addresses the growing need for sustainable, high-quality housing for affordable and middle-income families in India.”
Investment in expanding residential infrastructure
Under the terms of this partnership, HDFC Capital-managed funds will provide both equity and structured debt to Subodh Runwal-promoted Runwal Enterprises. This substantial funding arrangement will enable Runwal to significantly scale its operations, leveraging HDFC Capital’s infusion to facilitate land acquisition, working capital, and development of new residential projects across Mumbai.
“We are deepening our partnership with HDFC Capital, allowing us to establish a presence across diverse areas of the metropolis,” said Subodh Runwal, Director of Runwal Enterprises. He noted that the flexibility of capital will help the company cater to a range of socio-economic segments while supporting the group’s growth plans.
Supporting the government’s ‘Housing for All’ mission
The partnership aligns with the government’s ‘Housing for All’ initiative, furthering HDFC Capital’s commitment to promoting affordable housing. Through this platform, HDFC Capital will support Runwal Enterprises in developing homes that meet the growing demand for mid-income and sustainable housing in the region.
Additionally, HDFC Capital’s focus extends beyond financing; the firm aims to drive innovation in the real estate sector by investing in new technologies and fostering partnerships with tech firms. By doing so, HDFC Capital seeks to modernize housing development, ensuring the adoption of sustainable practices and advanced solutions for project execution.
Expanding HDFC Capital’s Real Estate Portfolio
As the investment manager of four SEBI-registered Category II Alternative Investment Funds, HDFC Capital oversees a $4.2 billion platform dedicated to the development of affordable and mid-income housing. With this partnership, HDFC Capital strengthens its footprint in the MMR region, where it has already invested Rs 850 crore in the Runwal Group’s previous projects, achieving successful exits with strong returns in 2022.
This collaboration with Runwal also illustrates the rising trend of platform deals in India’s real estate sector, where institutional investors team up with local developers to unlock growth across various asset classes. These partnerships benefit both parties—investors leverage local expertise, while developers gain significant capital to expand their projects and increase liquidity.
Founded in 1978, Runwal Group has a diverse portfolio spanning residential, commercial, and retail developments, with 65 completed projects across millions of square feet. This partnership with HDFC Capital will enable Runwal to expand its footprint and deliver on its vision of building sustainable, inclusive housing communities that cater to a wide socio-economic demographic.
With an estimated project value of over $1 billion, this partnership between HDFC Capital and Runwal Enterprises is a major step forward in the development of sustainable, affordable housing. Through this platform, HDFC Capital and Runwal are poised to make significant contributions to Mumbai’s urban landscape, creating residential spaces that align with modern needs for affordability, sustainability, and quality living.
