Hospitality chain Lemon Tree Hotels Ltd has entered into a joint venture with global private equity firm Warburg Pincus LLC to form a platform that would jointly invest about $428.5 million (Rs 3,000 crore) to develop student housing and other co-living space in India. Warburg Pincus has formed the partnership through its affiliate Magnolia Grove Investment Ltd, Lemon Tree said in a BSE filing. This would also mark the entry of Lemon Tree into the rental housing business. The joint venture, called Hamstede Living Pvt. Ltd, will build, acquire, develop, operate and offer on short and long-term leases real estate projects, with a primary focus on student housing, co-living for working professionals and multi-family users, the New Delhi-based hotel company said. Lemon Tree and Warburg Pincus follow budget hospitality firm OYO Rooms which in October entered the rental housing business by setting up OYO Living. OYO had announced that it would start with 35 properties comprising more than 2,000 beds in Noida, Gurugram, Bengaluru and Pune. Lemon Tree will hold a 30 per cent stake in Hamstede Living, while Magnolia Grove will own 68 per cent. The rest 2 per cent will be held by Patanjali Keswani, MD of Lemon Tree. The two partners would initially invest $214 million (Rs 1,500 crore) in equity into the joint venture. A similar amount is planned for investment at a later stage.