Indian hotel chain Lemon Tree Hotels Ltd. and an affiliate of global private equity firm Warburg Pincus formed a joint venture to invest 30.00 billion Indian rupees in a pan-India co-living vehicle.

Lemon Tree and the Warburg Pincus affiliate will hold 30% and 68% respective stakes in the joint venture, with Lemon Tree Chairman and Managing Director Patanjali Keswani accounting for the remaining 2%.

The partners will initially invest 15.00 billion rupees in equity over a period of time, followed by an additional 15.00 billion rupees, at their option.

The joint venture will develop rental housing projects via a combination of greenfield purpose-built properties, refurbishment of existing under-managed/stressed commercial and residential assets taken on lease/acquisition basis, as well as management of existing for-rent accommodation projects.

The platform will look to offer affordable and conveniently located co-living spaces for students and young professionals. The projects will also include shared spaces.

As of Dec. 26, US$1 was equivalent to 70.07 Indian rupees.