$1.8-billion raised by HDFC Capital for affordable housing

Subsidiary of HDFC Ltd., HDFC Capital focused on affordable housing has achieved the initial close of its third fund of USD 1.88 billion (about Rs 13,500 cr.)

The company said in a statement, 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.

To raise additional funds to be invested in affordable housing in India, HDFC Capital is in active discussions with a few prominent global investors. Company’s Affordable Real Estate Fund-3 (H-CARE-3) is one the biggest funds raised to invest in the Indian residential real estate sector with investors promising in excess of USD 1.22 billion towards the first close. An estimated total fund corpus of USD 1.88 billion is expected by combining the above figure with potential reinvestments.

According to the wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), H-CARE 3 (primary investor), the fund will offer long-term, flexible funding throughout the lifecycle of affordable and mid-income residential projects, including initial-stage funding.

In addition, it said H-CARE 3 will also invest in technology companies (construction technology, fintech, cleantech, etc.) engaged in the affordable housing ecosystem.

HDFC Chairman Deepak Parekh said, “HDFC Capital has been one of the pioneers of investing in affordable and mid-income housing projects in India.

“With support from marquee global investors like ADIA and partnerships with leading developers, the platform is well on its way to ensuring many more Indians become homeowners,”

At HDFC Capital, the vision is to finance the development of the affordable housing ecosystem in India and provide a seamless platform for all stakeholders including global investors, developers, and vendors to access financing and technology innovations, the company’s Managing Director Vipul Roongta said.