Delhi-NCR–based mid-income developer HomeKraft, part of the ATS Group, has fully repaid ₹1,250 crore to HDFC Capital Affordable Real Estate Fund-2 (HCARE-2), delivering a complete exit to the fund without resorting to external refinancing. The development highlights the improving liquidity conditions for select mid-income housing projects and highlights stronger buyer traction across NCR.
In its official communication, the company emphasized that the repayment was executed purely through internal cash generation. As the developer stated, “The repayment has been made entirely from HCARE-2 portfolio project cash flows, without any third-party refinancing, a standout move in India’s residential housing market.” This positions HomeKraft among the relatively small group of developers capable of settling large institutional obligations through operating proceeds alone.
HCARE-2’s association with ATS HomeKraft spans several years, covering a portfolio of over 7,500 residential units with a combined sales potential of ₹8,000 crore. During the investment period, the developer claims to have delivered multiple projects ahead of their scheduled timelines, an outcome that is generally rare in the broader NCR real estate environment. The portfolio also included a plotted development along the Yamuna Expressway, where the demand significantly exceeded the supply of available plots, indicating strong absorption and end-user interest.
The sharp appreciation in unit prices further reflected the strong market momentum in the segment. Commenting on this trend, Vipul Roongta, CEO and MD at HDFC Capital, noted, “Most of the projects launched in the portfolio are now almost three times higher than the launch price in a span of four to five years, which shows there is a large unmet demand for well-designed, high-quality mid-income homes.”
This sustained price growth indicates not only robust demand but also the increasing preference for credible developers delivering projects with consistency and speed.
HomeKraft Infra was originally established in 2017 with equity participation from a fund managed by HDFC Capital Advisors. The aim was to focus exclusively on mid-income residential developments across Delhi-NCR, a segment that has seen rising institutional interest over the last decade. HDFC Capital Advisors today manages four SEBI-registered Category II AIFs—including HCARE-2—that together form a $4.5-billion dedicated platform for affordable and mid-income housing across India.
Elaborating on why the fund backed ATS HomeKraft, Pankaj Khanna, Associate Principal for Investments and Technical at HDFC Capital, said: “Our partnership with ATS HomeKraft reflects our strong conviction in developers who combine launch-to-delivery discipline with strong consumer traction in the mid-income housing space.”
The latest repayment follows another major balance-sheet action from the developer, where the ATS Group prepaid ₹190 crore to the SWAMIH Investment Fund I for a separate project located along the Dwarka Expressway. Together, these settlements indicate rising internal efficiencies and assert the group’s intention to deleverage.
HomeKraft added that “These exits are clearly a sign of healthy cash flows due to timely execution and underscore the group’s improving balance sheet and commitment to timely handovers.”
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