BBN Bureau
Abu Dhabi’s ADIA is HCARE 3’s primary investor
MUMBAI/January 23-2022: HDFC Capital Advisors Ltd (HDFC Capital) has successfully achieved the initial close of its third fund focused on affordable housing, the HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3).
HDFC Capital is a wholly owned subsidiary of Housing Development Finance Corporation Ltd (HDFC), and is acting as an investment manager.
H-CARE 3 is one the largest funds raised to invest in the residential real estate sector in India with investors committing in excess of $1.22 billion (appr. Rs9080 crore) towards the first close, which combined with potential reinvestments by the fund, creates an estimated total fund corpus of $1.88 billion.
The primary investor in HCARE 3 is a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). Set up in 2016, HDFC Capital is aligned with the Government of India’s goal to increase housing supply and support the Pradhan Mantri Awas Yojana – ‘Housing for All’ initiative.
H-CARE 3 combines with the HDFC Capital Affordable Real Estate Funds – 1 & 2, raised in 2016 and 2017 respectively, to create a $3 billion funding platform, which has recently been rated as one of the world’s largest private finance platforms focused on development of affordable housing.
H-CARE 3 will provide long-term, flexible funding across the lifecycle of affordable and mid-income housing projects including early-stage funding.
In addition, H-CARE 3 will also invest in technology companies (construction technology, fin-tech, clean-tech etc.) engaged in the affordable housing ecosystem.
1 mn affordable homes
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. In order to achieve this objective, the company is in active discussions with leading global investors to raise additional funds to be invested in affordable housing in India.
Deepak Parekh, Chairman – Housing Development Finance Corporation (HDFC) said housing will play an even more important role in India 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,” Parekh added.
Khadem AlRemeithi, Executive Director of the Real Estate & Infrastructure Department, ADIA, noted that H-CARE 3 presents the opportunity to grow ADIA’s existing relationship with HDFC, while continuing to address the significant demand for affordable housing in India.
