HDFC Capital has achieved the initial closure of its third fund focussed on affordable housing, the HDFC Capital Affordable Real Estate Fund – 3 (H-CARE-3). The fund will provide long-term funding across the lifecycle of affordable and mid-income housing projects, including early-stage funding. H-CARE 3 will also invest in technology companies such as construction technology, fintech and cleantech that are engaged in the affordable housing ecosystem. HDFC Capital is a wholly owned subsidiary of HDFC Ltd. “H-CARE 3 is one the largest funds raised to invest in the residential real estate sector in India, with investors committing over $ 1.22 billion towards the first close, which combined with potential reinvestments by the fund, creates an estimated total fund corpus of $1.88 billion,” it said in a statement on Sunday. “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, while focussing 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,” it further said. Expressing optimism about the country’s growth prospects and the housing sector, Deepak Parekh, Chairman, HDFC Ltd, said housing will play an even more important role as a catalyst for growth with increased demand for affordable and mid-income housing. “HDFC Capital has been one of the pioneers of investing in affordable and mid-income housing projects in India. With support from marquee global investors like ADIA and partnerships with leading developers, the platform is well on its way to ensuring many more Indians become homeowners,” Parekh noted. The primary investor in H-CARE 3 is a wholly-owned subsidiary of Abu Dhabi Investment Authority (ADIA). Khadem Al Remeithi, Executive Director of Real Estate and Infrastructure Department, ADIA, said: “H-CARE 3 presents the opportunity to grow our existing relationship with HDFC, while continuing to address the significant demand for affordable housing in India. This builds on the success of previous H-CARE funds, which have supported the development of new mid-market housing projects across the country, in alignment with Indian government priorities.”
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