HDFC Capital on Sunday said it has closed for subscription an affordable housing fund with projected corpus of $1.88 billion.
The HDFC Capital Affordable Real Estate Fund – 3 was involved in one of the biggest exercise in fund-raising for affordable housing, the wholly owned subsidiary of HDFC Ltd said.
With the Abu Dhabi Investment Authority (ADIA) the primary investor, H-CARE 3 has raised more than $1.22 billion towards the first close. Combined with potential re-investments, the corpus is estimated at of $1.88 billion.
The fund will provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects including early-stage funding.
In addition, it will invest in technology companies — construction technology, fin-tech, clean-tech — engaged in the affordable housing ecosystem.
“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, " Deepak Parekh, chairman – HDFC Ltd, said.
HDFC Capital’s target is to finance the development of one million affordable homes in India.
