Housing Development Finance Corp. will invest about Rs.2 billion ($41 million) in one of the projects of New Delhi-based real estate developer ATS Infrastructure Ltd, sources close to the development said.
The investments from HDFC would be for the developer’s Gurgaon project near the national capital, said the sources, who requested anonymity as the talks were private.
Both ATS and HDFC refused to comment.
ATS is building two large residential projects in Gurgaon with an investment of over Rs.5.4 billion. The company plans to complete the projects in three years.
HDFC Group has significant exposure to India’s real estate sector with a $800 million dedicated real estate fund. In addition, its portfolio management services and a fund managed by HDFC Bank invest in property projects.
Private equity investment in Indian property is down slightly during the first nine months this year, to about $784 million, from $817 million at the same time last year.
According to reports domestic fund houses including Kotak Real Estate Fund, IndiaReit and ASK Investments are all in the process of raising funds totaling about $1 billion.
