HDFC Capital today announced the initial close of its third fund, HDFC Capital Affordable Real Estate Fund-3 (H-CARE-3), with sponsor and primary investor Abu Dhabi Investment Authority (ADIA) committing $ 1.22 billion.
Combined with potential reinvestments, the total corpus rises to an estimated $1.88 billion in funds focused on the affordable housing segment.
HDFC Chairman Deepak Parekh said that 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.
Set up in 2016, HDFC Capital, a wholly-owned subsidiary of HDFC Ltd, is aligned with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana–‘Housing for All’ initiative. Housing Development Finance Corporation (HDFC) is the sponsor of the fund.
H-CARE-3 combines HDFC Capital’s Affordable Real Estate Funds – 1 & 2, raised in 2016 and 2017 respectively, to create a $3 billion funding platform.
The primary focus of the fund is on providing long-term, flexible debt across the lifecycle of real estate projects (including land, approval and last mile funding) for affordable and mid-income housing across India.
The H-CARE 3 funds are expected to be committed towards investments over the next four-five years. The fund has flexibility to provide equity funding for real estate projects, it can also invest in tech companies like construction technology, fin-tech, clean-tech etc. that address the needs of the affordable housing ecosystem.
The projected Development Foot-Print is estimated to be 280 million square feet (sq.) across affordable and mid-income residential projects in leading cities of the country.