HDFC Capital, the real estate private equity arm of HDFC Group, has partnered with Shalimar Corp to establish a Rs. 7.5 bn platform for residential and mixed-use projects in Uttar Pradesh. The platform will focus on Lucknow, Varanasi and Kanpur, according to a statement issued on Wednesday.

The partnership is expected to develop more than 5 mn sq ft of area and around 3,000 homes across the three cities. The projects will target residential demand in emerging urban centres, with a focus on planned communities and housing across different market segments.

HDFC Capital Managing Director and Chief Executive Officer Vipul Roongta said the partnership would combine local expertise with institutional capital to accelerate the delivery of quality housing. He identified rising incomes, urbanisation and infrastructure development as factors supporting housing growth in Uttar Pradesh.

Shalimar Corp Managing Director Khalid Masood said the company would work with HDFC Capital to develop planned communities across the state. The platform is intended to support the development of residential and mixed-use projects in markets where urban expansion and infrastructure investment are creating additional demand for housing.

HDFC Capital, a subsidiary of HDFC Bank, focuses on financing the sustainable development of affordable and mid-income homes. Shalimar Group, founded in 1988 and headquartered in Lucknow, has interests in real estate and infrastructure development, property management and glass processing. The group operates as a diversified real estate and infrastructure-focused business.