HDFC reviving stressed realty projects

The Housing Development Finance Corporation

Housing Development Finance Corp. Ltd (HDFC) has decided to set up a special situations fund that will invest in stressed projects in real estate and Kaizad Hazari has been appointed as chief executive officer-designate for the new venture. The fund aimed at exploring opportunities in real estate stressed assets, and then to take over these projects and turn them around, said vice chairman and chief executive, Keki Mistry said, adding that the real estate sector is an area of core competence for HDFC and its distressed themed fund comes at a time when the residential sector, in particular, has undergone a nearly five-year long slowdown. HDFC is scanning the market to identify projects that are stuck, and where it can help in completing them and offer possession to retail investors and buyers. As an investor, the new fund can either continue with the existing project developer or bring in a new developer. The ban is looking at the top 6-8 cities and evaluate opportunities across segments, including residential, commercial office and hospitality, he claimed.