The Carlyle Group on Thursday, August 25, said it has invested $26 million in Value & Budget Housing Corporation (VBHC), the Bangalore-based low-cost housing developer promoted by former Mphasis Chairman Jaithirth Rao.
The investment, to fund new housing projects, comes from a $1.04-billion sector agnostic growth capital fund of Carlyle Asia Growth Partners IV, the asset manager said. It added that the existing investors in VBHC have also committed additional capital but did not specify the details.
The real estate developer, in which Housing Development Finance Corporation (HDFC) holds an equity stake, has also raised funds from India Financial Inclusion Fund previously.
It plans to build over one million houses across the country in the next 10 years and is planning projects in Chennai, Hyderabad and the National Capital Region. It has so far sold more than 1,000 units at its first housing project in Bangalore, launched in 2010, and aims to sell another 900 starting next month. The project offers apartments priced between R5.5 lakh to R11 lakh.
“VBHC is a play on the strong untapped demand for affordable housing in India which is estimated at more than $200 million,” said Wayne Tsou, Managing Director and head of Carlyle Asia Growth Capital, adding that the demand will continue to grow quickly due to urbanisation and rising income levels.
“We hope to leverage their relationships as we continue to fulfill our vision of building a million affordable entry level homes in this country,” said Jaithirth Rao, better known as Jerry Rao. The company is aiming at lean industrial process which can be scaled up by using ‘form’ technology for construction.
