Avendus Capital Advises Value & Budget Housing Corporation on Its Equity Raise From the Carlyle Group.
Value & Budget Housing Corporation (VBHC), a pioneer in the construction and development of affordable entry level housing in India, has concluded its equity raise of USD 26 million from The Carlyle Group. The capital, which will be used to fund the building of these new homes, comes from FCG IX, a part of Carlyle Asia Growth Partners IV (CAGP IV), a US$1.04 billion sector-agnostic growth capital fund. Existing investors in VBHC have also committed additional capital alongside Carlyle.
VBHC launched their first project “VBHC Vaibhava” in Bangalore. Homes in VBHC Vaibhava are priced between INR 4.5 Lac to 10 Lac. More than 1,000 units have been sold in the last 12 months and the pre-sale of another 900 units will start next month. VBHC will adopt Form Systems in the construction of the project, which will allow for faster and superior construction, minimal wastage and high standardisation in the process. VBHC will launch similar projects in Chennai, Hyderabad and NCR.
Avendus Capital acted as the sole financial advisor to Value & Budget Housing Corporation for this transaction.
About VBHC | CAGP IV
VBHC was co-founded by Jaithirth Rao and P.S Jayakumar with a vision to build one million affordable entry level homes over ten years across urban India. VBHC is setting up an expansive network of integrated housing projects nationwide that will apply the latest industrial engineering and construction technology to improve the construction process and build scale through standardization. VBHC aims to bring value to home-buyers by maximizing their financial options, lowering maintenance costs and ensuring sustainable living through renewable energy and water & waste management. VBHC projects are situated in the urban periphery and are well connected to the city's central transportation system. Each of the projects will be self-sufficient and will contain an on-site English medium school, working women's centre, day care medical centre and a local shopping complex.
CAGP IV invests in high growth companies in key Asian markets including India, China and Korea. With more than US$2 billion in assets under management, CAGP adds value to portfolio companies through its global network, deep local insight from its native investment team, experience in a broad range of industries, expertise in business management and strengths in global M&A and capital markets initiatives. This has allowed CAGP’s portfolio companies to accelerate capacity and market share expansions.
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