HDFC Capital Raises Around INR 3000 Cr INR for Its Affordable Real Estate Fund in India

Affordable Real Estate in India Gets a Huge BOOST

At the first closing of its second scheme of the HlDFC Capital Affordable Real Estate Fund-3, HDFC Capital, a subsidiary of India's biggest mortgage lender HDFC, has raised nearly INR 3,000 crore (H-CARE 3).

H-second CARE3's scheme, along with the first raised less than a year earlier, contributed to the creation of a total fund corpus of $2.2 billion, making it one of the biggest residential real estate investment funds in India.

This creates a USD 3.1 billion platform for the building of inexpensive and middle-income homes in India utilising HDFC Capital's capital.

The principal investor in H-CARE 3's first and second schemes is an Abu Dhabi Investment Authority wholly-owned company (ADIA).

"Despite recent macroeconomic challenges, I continue to remain optimistic about the market for housing in India. As the fulcrum of global economy, India is expected to remain one of the fastest expanding major countries, and housing will play an even greater role as a growth accelerator "

said Deepak Parekh, chairman, HDFC.

According to him, the HDFC Capital platform is well on its way to realising its medium-term objective of financing one million affordable houses in India, thanks to the assistance of top global investors like ADIA and collaborations with reputable developers.

HDFC Capital is one of the most prominent investors in India's low and middle-income housing developments.

"Urbanization is an irreversible trend in India, which, when paired with the government's emphasis on cheap housing, would lead to an exponential increase in the demand for inexpensive and middle-income houses."

said Vipul Roongta, managing director and chief executive officer of HDFC Capital.

According to Roongta, HDFC Capital's vision is to finance the development of the affordable housing ecosystem in India and to provide a platform for all stakeholders, including global investors, developers, and vendors, to gain access to financing and technological innovations for the creation of sustainable and smart affordable homes.

Through the H-CARE funds, HDFC has built a track record of assisting the nationwide creation of new affordable housing stock.

Our most recent investment in the H-CARE platform is intended to promote its development as it continues to fulfil the rising need for early-stage housing project finance in India "ADIA's Executive Director of the Real Estate Department, Mohamed AlQubaisi, said the following.

HDFC Capital was founded in 2016 in accordance with New Delhi's objective to enhance housing supply and promote the Pradhan Mantri Awas Yojana "The Housing for All" programme.

H-CARE 3's first and second schemes join with the 2016 and 2017 raised HDFC Capital Affordable Real Estate Funds-1 and 2 to establish the USD 3.1 billion financing platform.

H-CARE3 will offer flexible, long-term finance throughout the lifetime of affordable and middle-income housing developments, including support for the earliest stages.

International Finance Corporation (IFC), a member of the World Bank, issued a USD 400 million loan to HDFC in December with the intention of promoting affordable green housing.