HDFC Cap raises $1.9bn for affordable housing

MUMBAI: HDFC Capital has mobilised $1.9 billion for investment in real estate sector through the close of its third fund focused on affordable housing — the largest in the segment globally.
The HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3) on Sunday announced its first close with investors, (largely Abu Dhabi Investment Authority) committing over $1.2 billion. Given that this is a long-term fund with potential reinvestments the fund corpus available for investment is expected to be in the region of $1.9 billion.
“We have raised $1.1 billion so far for affordable housing and have facilitated the construction of 1.8 lakh units. Given that the housing shortage is estimated at over 25 million the potential is huge and there is a lot of interest among global investors in the affordable housing segment in India,” said Deepak Parekh, chairman, HDFC.
HDFC Capital’s target is to finance the development of 1 million affordable homes in India. “This is one of the largest funds (globally) raised for providing risk capital to affordable and mid-income housing projects. The objective is to create a platform for financing and supporting the entire supply-side value chain ecosystem of project development including developers, global investors, technology companies in housing and construction,” said Vipul Roongta, MD & CEO, HDFC Capital Advisors.
H-CARE 3 will provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects.

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