VBHC Value Homes Private Ltd (previously known as Value and Budget Housing Corporation) has entered into a strategic partnership with Stichting Van Herk Investments, Foundation, a Rotterdam-based global investment firm.

The firm is investing an equivalent of $20 million, the largest investment since the announcement of the new FDI policy in the affordable segment in India.

The investment memorandum was signed in the presence of Dutch Prime Minister Mark Rutte on June 6. This is the second round of investment by Van Herk Groep, the first being in July 2014, when it invested in the equity capital of VBHC.

The current round covers both development of affordable housing projects and affordable serviced apartments for young professionals and industrial workers. This investment will enable VBHC to expand its footprint in India. VBHC will also continue to benefit from the expertise of Van Herk Groep in the residential housing segment.

Commenting on the transaction, Jerry Rao, Chairman, VBHC Value Homes, said, “There is a huge potential in India for affordable housing, especially the affordable service apartments segment. Through our partnership with Van Herk Groep our objective is to bridge this need gap. We firmly believe that this association will be a perfect marriage of their extensive and global industry knowledge and our vision of delivering world-class quality, affordable homes. We are proud that Van Herk Groep is a shareholder in VBHC”

Aat Van Herk said: “This investment is representative of our continued interest in India and our objective of associating with quality partners. This is also an opportunity to play a larger role in boosting the affordable housing market and contribute towards the larger goal of ‘Housing for All by 2022 and Make in India’.”

“We look forward to a sustained relationship with VBHC and contribute to the growth momentum,” he added.

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