HDFC fund to invest Rs800 cr in Bangalore, Mumbai projects

HDFC Real Estate Private Equity Fund, which recently invested Rs500 crore in Lodha World One, the tallest residential tower in the world coming up in Lower Parel, central Mumbai, will invest $180 million in two other projects, a senior official of the fund said.

“We will invest in two projects — one in Bandra and another in Bangalore in the next three months,” the official said, requesting anonymity.

The fund has a corpus of $350 million which has to be deployed by October 2011.

A tender was floated for the Government Colony at Bandra near the Western Express Highway and Bandra Kurla complex (BKC) for redevelopment. The 98-acre colony was divided in to three parcels — one of 57 acres, and the balance 41 acres in two parcels.

The redevelopment project was bagged by DB Realty, Ackruti City and Kakade Developers.

Vinod Goenka, chairman of DB Realty, however, denied any deal with the HDFC fund. “We are not talking to any private equity player, may be the other parties are,” he said.

DB Realty, which bagged the maximum part of the project, was looking to raise Rs1,200 crore by selling a 20% stake in the project.

DB Realty will reconstruct the government residential buildings and hand them over. About 11 acres of land remaining would belong to the company as saleable component.

The timeline for the project is 5 years and DB Realty has to pay around Rs800 crore while signing the execution of the agreement document in the next few months.