DBJ has committed capital to the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), managed by the HDFC Capital Advisors Ltd.
Also read: Asia shares take a breather as Gulf hostilities drag on“The H-DREAM Fund has a target fund corpus of $500 million with a greenshoe of $500 million, with current investor commitments in excess of $350 million,” the statement said.
In August last year, IFC had committed up to $150 million as an anchor equity investment in H-DREAM Fund. HDFC Capital is the real estate private equity arm of the HDFC Group.
HDFC Capital is one of the largest real estate private equity funds in India, with a focus on affordable and mid-income residential real estate. Its funds combine to create a platform in excess of $4.5 billion. H-DREAM Fund focuses on the development of green, affordable and mid-income housing.Also read: US Dollar near one-week high as US-Iran tensions flare, yen nears intervention zone
Deepak Parekh, Non-Executive Chairman, HDFC Capital, said, ”The India-Japan relationship is a trusted partnership based on strong institutional cooperation. India has seen increased participation by Japanese investors in its financial and real estate sectors.” “As a government-owned institution, DBJ’s first investment in real estate in India is significant for us and reinforces long-term investor confidence in the country,” he added.
Through this investment, DBJ said it will support the sustainable development of the Indian real estate market, which is facing a housing shortage.
”We are delighted to partner with DBJ in its first real estate investment in India. HDFC Capital’s focus on early-stage financing for quality, affordable and mid-income housing positions it well to deepen engagement with investors committed to diversification and sustainable development,” Vipul Roongta, CEO, HDFC Capital, said.
DBJ’s investment in H-DREAM Fund is made through HDFC Capital’s offshore feeder fund structure, established under the International Financial Services Centres Authority (IFSCA) framework at the Gujarat International Finance Tec-City (GIFT City).
DBJ is a Japanese financial institution that provides integrated investment and loan services to companies and projects.
