HOABL prepays Rs 1,100 crore to HDFC Capital
HoABL has repaid Rs 1,100 crore of the Rs 1,500-crore investment commitment made by HDFC Capital Advisors ahead of schedule, completing an early exit from five projects under their joint investment platform, following accelerated collections from project deliveries.
The platform, established in 2023, covered 11 plotted development and low-rise projects across metros, Tier II cities and emerging markets. HDFC Capital committed around Rs 1,500 crore to the projects. Faster cash collections from completed developments, including Imperial Goa and Isle of Bliss, enabled the early repayment . HDFC Capital continues to have around Rs 400 crore deployed across the remaining six projects.
The transaction marks the completion of an institutional investment cycle within six years of HoABL's establishment in 2020. Trustcap served as the sole financial advisor.
The early repayment allows HoABL to retire institutional capital from five project entities, reducing its financing costs and giving it greater control over cash flows from the remaining inventory. In real estate private equity, early repayments are typically driven by project collections and contractual arrangements that prioritise the return of institutional capital.
According to Vipul Roongta, CEO of HDFC Capital, the company was among HoABL's early investors and the returns reflect the partnerships it builds. "HDFC Capital has been an early investor in HoABL and the value creation on our investments reflects the strong partnerships that HDFC Capital builds," he said.
HoABL chairman Abhinandan Lodha said the transaction reflected the company's approach to identifying real estate opportunities and managing investments through their lifecycle. He said the focus was on "actively working towards value creation throughout the investment lifecycle."
The repayment also provides HoABL with a track record of returning institutional capital ahead of schedule, which could help it access funding from lenders and investors. Its direct-to-buyer model has sold more than 13 million sq ft to over 8,500 customers.
However, the repayment also represents a cash outflow from project account.
HoABL, which operates independently of the listed Lodha Group, has 25 million sq ft under development across five states.
The platform, established in 2023, covered 11 plotted development and low-rise projects across metros, Tier II cities and emerging markets. HDFC Capital committed around Rs 1,500 crore to the projects. Faster cash collections from completed developments, including Imperial Goa and Isle of Bliss, enabled the early repayment . HDFC Capital continues to have around Rs 400 crore deployed across the remaining six projects.
The transaction marks the completion of an institutional investment cycle within six years of HoABL's establishment in 2020. Trustcap served as the sole financial advisor.
The early repayment allows HoABL to retire institutional capital from five project entities, reducing its financing costs and giving it greater control over cash flows from the remaining inventory. In real estate private equity, early repayments are typically driven by project collections and contractual arrangements that prioritise the return of institutional capital.
According to Vipul Roongta, CEO of HDFC Capital, the company was among HoABL's early investors and the returns reflect the partnerships it builds. "HDFC Capital has been an early investor in HoABL and the value creation on our investments reflects the strong partnerships that HDFC Capital builds," he said.
HoABL chairman Abhinandan Lodha said the transaction reflected the company's approach to identifying real estate opportunities and managing investments through their lifecycle. He said the focus was on "actively working towards value creation throughout the investment lifecycle."
The repayment also provides HoABL with a track record of returning institutional capital ahead of schedule, which could help it access funding from lenders and investors. Its direct-to-buyer model has sold more than 13 million sq ft to over 8,500 customers.
However, the repayment also represents a cash outflow from project account.
HoABL, which operates independently of the listed Lodha Group, has 25 million sq ft under development across five states.
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