January 24, 2022 3:31:12 am
HDFC Capital, a wholly owned subsidiary of HDFC Ltd and acting as an investment manager, has achieved the initial close of its third fund of an estimated $1.88 billion (about Rs 13,989 crore) focussed on affordable housing, the HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3).
H-CARE 3 is one the largest funds raised to invest in the residential real estate sector in India with investors committing in excess of $1.22 billion towards the first close, which combined with potential reinvestments by the fund, creates an estimated total fund corpus of $1.88 billion. The primary investor in H-CARE 3 is a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Set up in 2016, HDFC Capital is aligned with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative. H-CARE 3 combines with the HDFC Capital Affordable Real Estate Funds – 1 & 2, raised in 2016 and 2017 respectively, to create a $3 billion funding platform which has recently been rated as one of the world’s largest private finance platforms focused on development of affordable housing.
H-CARE 3 will provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects including early-stage funding. In addition, H-CARE 3 will also invest in technology companies (construction technology, fintech and clean-tech) engaged in the affordable housing ecosystem.
HDFC Capital’s target is to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology, whilst focusing on sustainability. The company is in active discussions with leading global investors to raise additional funds to be invested in affordable housing in India.
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HDFC Chairman Deepak Parekh said, “In India, housing will play an even more important role as a catalyst for growth with increased demand for affordable and mid-income housing. Combined with India’s growth prospects, I have never been as optimistic about the housing sector as I am today.”
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