Page 15 - Banking Finance June 2019

HOUSING

HOUSING

PNB terminates deals to HDFC Capital Advisors to mentor proptech companies
sell stake in PNB Housing HDFC Capital Advisors Ltd is all set to invest, partner and mentor the property
technology companies that drive innova-
Finance
tion and efficiencies within the affordable
Punjab National Bank (PNB) has housing ecosystem. Besides, its new ini-
called off a
tiative, HDFC Affordable Real Estate and
deal to sell
Technology Program (HeART), HDFC
stake in its
Capital will provide a platform to real
housing fi-
estate technology companies along inno-
nance arm
vative products with a view of creating
to global private equity firms General
efficiencies as well as minimizing the costs in every part of the development
Atlantic and Varde Partners.
cycle of a real estate project.
The PNB informed that post termi-
"HDFC's endeavor is to act as an enabler to the growth of affordable housing in
nation of the share purchase agree-
the country. HeART will support businesses which are innovating and building
ment (SPA); it will continue to be the
technology solutions to enhance the supply of affordable housing. India has a
sole promoter of the company and
huge shortage of housing and these incremental steps will help lower the cost
stay strategically invested in the
of housing for home buyers," said Deepak Parekh, chairman, HDFC Ltd. HDFC
company.
Capital Advisors.
"The transacting parties to the share
purchase agreement (SPA) have not Focusing on affordable and mid income residential housing, HDFC Ltd. HDFC
been accorded approval by the RBI Capital Advisors invested more than $1 billion over the past two years all over
for exemption from application of the country with marquee developers.
pricing guidelines under the foreign
"HDFC Capital seeks to address the demand-supply gap in affordable housing in
exchange management," PNB Hous-
India through a combination of financing, partnerships and technology… We look
ing Finance said.
forward to bringing together multiple stakeholders, including developers, con-
Among the two agreements, the sultants, construction companies, global institutions, venture funds, incubators
agreement with Varde Partners re- and accelerators," said Vipul Roongta, Managing Director and CEO - HDFC Capi-
sulted into mutual termination. tal Advisors.
Meanwhile, the agreement with
HDFC Capital is also planning to partner with leading academic institutions, in-
General Atlantic Group was termi-
dustry platforms and accelerators with an aim of creating ecosystem to comply
nated during the absence of regula-
with various components in the development affordable housing and make the
tory approvals.
process in a more efficient manner.

BANKING FINANCE | JUNE | 2019 | 15