HDFC Capital Advisors and an affiliate of Cerberus Capital Management have partnered to target the creation of 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 companies said in a statement on Thursday.
The development of the platform comes as a response to the series of shocks to the Indian residential real estate market that have created a significant need for capital, it further said, noting that many buyers have been unwilling to fund projects in advance of completion while traditional financing channels have come under severe pressure.
“The platform intends to partner with quality developers to provide capital solutions and expedite project construction and completion,” the statement further said.
“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,” said Deepak Parekh, Chairman, HDFC Ltd.
Frank Bruno, Co-Chief Executive Officer of Cerberus said the partnership will help support high-quality developers and leading projects. “We are able to 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,” he said.