HDFC Property Fund, Sterling take up Rs 4,000 cr project in Whitefield

May 6, 2008	(1 votes, average: 3 out of 5)  Loading ...
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Sterling Urban Developments, a joint venture floated by HDFC Property Fund (a subsidiary of Housing Development Finance Corporation) and Bangalore-based Sterling Developers will take up development of 150 acres in Whitefield at a cost of Rs 4,000 crore.

According to Ramani Sastri, managing director, Sterling Developers, “The project, ‘Sterling Villa Grande’, is being taken up in Whitefield and will see a total built-up of 20 million square feet at a cost of Rs 4,000 crore. The project is being built in phases.” “In phase I, 144 courtyard villas are being built and in phase II, the project will have a mixed-use development bringing together over 2,000 apartments, commercial, retail and IT office space,” he added. For Sterling Villa Grande, the company has roped in Belt Collins, Singapore to develop the master plan and for architecture needs Bangalore-based Venkataramanan Associates.

HDFC Property Fund and HDFC’s International Property Fund, which raised $800 million last year, both have committed Rs 40 crore each in Sterling Developers’ mixed-use property development. Speaking after launching the project, a spokesperson for HDFC Property Fund, said “Coming together of housing finance institution and property developer is a trend where it gives home buyer an advantage in terms of quality, timely completion clear titles and the required comfort factor in property investments.”

Along with the Bangalore project, the company is also into expansion. As part of expansion the company has commenced property development in Pune and Kochi. The company is actively considering acquiring two infrastructure companies to aggressively enter infrastructure sector. Sterling Developers’ investment plans span education and hospitality sectors as well. The company has acquired land for hotel project in Hyderabad and Bangalore. Currently, the company owns and manages the Canadian International School, in Bangalore and is planning one each in Lonavla and Noida.

The move by HDFC to invest in the property development of Sterling Developers follows a string of high-profile global private equity in Bangalore real estate. Global institutions such as Goldman Sachs, JP Morgan, Blackstone, Citi are actively hunting down lucrative investments in this market which is witnessing growth at a furious pace.

News Published Under:   Real Estate India |

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