HDFC Capital gets Rs 1,100 cr early exit from House of Abhinandan Lodha eight projects

HDFC Capital Advisors, the real estate private equity arm of the HDFC Group, has received an exit worth over Rs 1,100 crore from its investments in projects of House of Abhinandan Lodha (HoABL) under a joint investment platform established in 2023.

The exits were completed ahead of schedule, supported by cash flows generated through early project deliveries.

HDFC Capital had committed around Rs 1,500 crore through structured equity to the platform, which was established to invest in plotted developments and low-rise residential projects across metros, tier II cities and emerging property markets. The platform has made investments in a total of 12 projects so far and is also working on three new investments.


"HoABL is a new-age real estate company which has successfully created a differentiated real estate niche, particularly through plotted developments, low-rise projects and focus on affordable and mid-income housing in key property markets across India," said Vipul Roongta, CEO of HDFC Capital.

According to him, HDFC Capital had been an early investor in HoABL and that the value creation reflected the partnerships built by the investment firm. The two companies will continue their association.

“This exit reflects our focus on disciplined project execution, timely delivery and active asset management to create value throughout the investment lifecycle. It underscores the strength of our approach to identify high-potential locations, develop projects and unlock their value through execution. We look forward to continuing our partnership with HDFC Capital across the remaining projects,” said Abhinandan Lodha, Chairman, HoABL.

The exits span projects in Ayodhya, American Centre in South Mumbai, Naigaon and Neral, along with two developments in Goa’s Vasco and Bicholim. HDFC Capital continues to hold investments in other projects under the platform, including the second phase of the Ayodhya project, a development in Mashobra near Shimla, Khopoli and Amritsar.

Founded in 2020, HoABL focuses on branded land developments and has sold over 13 million sq ft, with 25 million sq ft under active development across five states with a customer base of more than 8,500. This year, the company is about to deliver possession of 7.5 million sq ft developed land ahead of schedule.

HDFC Capital, a subsidiary of HDFC Bank, manages multiple Category II alternative investment funds, with a combined platform representing $5 billion. Mumbai-based real estate investment bank TrustCap acted as the sole financial advisor to the transactions.

India's real estate sector has seen growing institutional interest in plotted developments and low-rise housing projects, with investors increasingly exploring opportunities beyond conventional apartment-led developments.

Land-led projects in emerging markets, pilgrimage destinations and peripheral locations around major cities have attracted developer and investor interest, supported by demand for second homes, holiday homes and residential land ownership. However, the sector also presents distinct challenges around land acquisition, title clearances, infrastructure development and project execution.

For institutional investors, the ability of developers to deliver projects on schedule, generate cash flows and provide defined exit opportunities remains an important consideration in evaluating such investments.