The Hindu Business Line : HDFC raises $800 m thru real estate fund

Mumbai, Aug. 30 Housing Development Finance Corporation said it has closed its first sponsored real estate fund, raising $800 million (Rs 3,280 crore).

The ‘HIREF International LLC’ fund was initially intended to raise $50 million, but HDFC eventually raised $800 million despite the current tight market situation, said an official with the company. HIREF International is now one of the largest international real estate funds in the country, he said.

The nine-year close-ended fund was privately placed, raising money from 28 different international investors.

“The objective of the fund is to invest in FDI-compliant real estate projects in India to achieve long-term capital appreciation. The fund will target equity returns of 20-25 per cent,” said Ms Renu Sud Karnad, Chairperson, HDFC Property Ventures Ltd and Executive Director, HDFC.

“The fund will have a conservative approach with no regional or sector bias and would invest in residential, commercial, hospitality, education, healthcare sectors and at developers’ entity level,” she said.

HDFC’s 30-year relationship with over 350 big developers India-wide stood it in good stead in a wary market, helping it close the fund, said company officials. Mr K. G. Krishnamurthy, Managing Director, HDFC Property Ventures Ltd said, “We will be identifying and advising on opportunities available with reputed developers in the major cities having sound fundamentals.”

More Stories on : Mutual Funds | New Fund Offer | Real Estate & Construction

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page