Hines JV to Develop Condo-Led Complex on Delhi’s Birla Mills Site

US builder Hines has joined a trio of Indian partners to develop a residential-led mixed-use complex on the site of a former cotton mill in Delhi.

The project will feature 3 million square feet (278,709 square metres) of condo residences and retail spaces across 10 acres (4 hectares) in Delhi’s northern neighbourhood of Kamla Nagar, Houston-based Hines said late last week.

For its maiden investment in Delhi’s residential market, Hines is partnering with Texmaco Infrastructure & Holdings, whose parent group Adventz has owned the land of the Birla Cotton Mills site for more than a century; local homebuilder Conscient; and HDFC Capital, the real estate private equity arm of finance giant HDFC Group.

“This project provides a platform for us to leverage our global development expertise to address the shortage of modern residential options in one of the city’s most sought‐after locations,” Hines India country head Amit Diwan said in a release. “The project will also address the lack of Grade A retail spaces in the region. We are confident of creating a development that resonates with the aspirations of Delhi’s discerning homebuyers.”

$460M Project Estimate

No financial terms of the partnership were disclosed, but an account in India’s Economic Times put the project’s estimated cost at INR 40 billion ($460 million). The initiative marks the first joint investment between Hines and HDFC Capital, which manages four funds totalling $4.2 billion with a mandate to develop affordable and mid-income housing in India.

“HDFC Capital remains dedicated to fostering long-term partnerships with trusted real estate leaders to address the ever-growing demand for high-quality housing in India,” said managing director and CEO Vipul Roongta. “This collaboration is a clear reflection of that vision and marks a significant step towards meeting India’s growing demand for modern and sustainable living spaces.”

Conscient has built more than 12,000 homes across the Delhi National Capital Region, Dehradun and Goa since the company’s launch in 1975. The Gurugram-based firm has developed over 12 million square feet of residential, commercial and institutional spaces.

Texmaco is a unit of $3 billion conglomerate Adventz, which operates in fertilisers, engineering, durable consumer goods, infrastructure and real estate.

“Hines and Conscient bring a unique combination of global expertise and deep local market knowledge, making this an ideal collaboration,” said Texmaco chairman Akshay Poddar. “Together, we are committed to delivering a world-class development that honours Delhi’s heritage while catering to the evolving aspirations of modern urban dwellers.”

Growing in NCR

The planned project is set to add to the Hines portfolio in the Delhi NCR, where the closely held firm teamed with India’s Pioneer Urban last April to develop a $180 million office property southwest of the capital in Gurugram.

Other Hines office projects in Gurugram include One Horizon Centre, completed in 2014 as the firm’s first project in India, and Atrium Place, a four-building complex with delivery anticipated in 2025. Both are joint developments with Indian real estate giant DLF.

The US firm also partnered with Shyam Telecom on development of Gurugram’s Skyview Corporate Park, which completed its first phase of 235,000 square feet in 2015.