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Provident Housing Ltd. (PHL), a wholly owned subsidiary of Puravankara Ltd., is currently in negotiations with HDFC Capital Advisors to secure a substantial equity investment exceeding Rs 1,000 crore. This endeavor aims to fuel Provident's expansion plans, which involve the construction of mid-income residential properties in the flourishing southern markets of Bangalore, Chennai, and Hyderabad. Additionally, the company seeks to explore new markets and territories.
Informed sources have revealed that both parties are actively engaged in discussions, and the fundraising is expected to be concluded over the coming quarters, pending agreement on the terms and conditions. As part of their strategic collaboration, it is likely that they will establish a dedicated platform for the acquisition and development of residential assets. HDFC Capital Advisors is set to participate in this initiative by partnering with Provident through the HDFC Capital Affordable Real Estate Fund 3.
This partnership is poised to facilitate the execution of real estate projects and is expected to result in a gross development value (GDV) exceeding Rs 3,500 crore. Provident is determined to not only deepen its footprint in existing regions but also deploy capital to explore additional property markets, as stated by an anonymous source familiar with the matter. To further bolster its growth strategy, Provident is actively pursuing expansion into new cities, including Mumbai and Pune.
This strategic move is aimed at doubling the company's residential portfolio from its current 13.82 million square feet to an impressive 20 million square feet. Provident plays a pivotal role within the parent company's business, and in light of the robust performance of the domestic residential sector, it aspires to significantly expand its portfolio.
Presently, Provident is overseeing a vast portfolio of ongoing projects, encompassing more than 11.32 million square feet across multiple locations, including Bengaluru, Mangalore, Chennai, Coimbatore, Hyderabad, and Goa. Furthermore, HDFC Capital, through its HDFC Capital Affordable Real Estate Fund 3, has recently entered a collaboration with the real estate arm of the TVS Group, Emerald Haven Realty.
This partnership is primarily focused on planned developments in the flourishing southern regions of India. HDFC Capital has also solidified its position in the real estate sector through an alliance with the House of Abhinandan Lodha. This collaboration is established as a joint venture platform with substantial investments exceeding Rs 1,500 crore dedicated to undertaking land projects, including plotted developments and low-rise projects across key property markets in India.
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