HDFC-backed HDFC Capital on Monday raised $376 million from investors for Scheme 2 of HDFC Capital Affordable Real Estate Fund-III (H-CARE 3). The latest fundraising has netted the platform $3.1 billion for affordable housing. H-Care 3 will provide long-term, flexible funding across the lifecycle of affordable and middle-income housing projects, including early-stage funding.
Additionally, the company said in its statement, H-Care will also invest in technology companies (construction technology, fin-tech, sustainability-tech etc.) engaged in 3 affordable sectors. Accommodation Ecosystem.
Deepak Parekh, President – K HDFC said, “Despite the recent headwinds in the global macro scenario, I remain optimistic about housing demand in India. As the pivot of global growth, India has the potential to remain among the fastest growing major economies. are envisaged to play an even more important role as a catalyst for housing development.”
Parekh said, “HDFC Capital has been a pioneer in investing in affordable and mid-income housing projects in India. With the backing of leading global investors like ADIA and partnerships with trusted developers, the HDFC Capital platform is well on its way Achieving its medium term target of funding one million affordable homes in India.”
Meanwhile, Vipul Roongta, MD & CEO, HDFC Capital, said, “Urbanisation is an irreversible trend in India, which coupled with the government’s thrust on affordable housing, will rapidly increase the demand for affordable and mid-income homes. ,
Under Affordable Housing Schemes, HDFC will be the sponsor and HDFC Capital will be the investment manager for H-Care 3 Schemes 1 and 2.
Specifically, investors and sponsors have currently committed $376 million to H-CARE 3 Plan 2. In addition, H-CARE 3 Plans 1 and 2 combine to make H-CARE 3 a total estimated corpus of $2.2 billion (including potential reinvestment). Largest amount of funds raised to invest in the residential real estate sector in India.
Having said that, H-Care 3 Scheme 2, H-Care 3 Scheme 1 (raised less than 1 year ago) and HDFC Capital Affordable Real Estate Funds – 1 and 2, raised in 2016 and 2017 respectively, Together the $3.1 billion fund forms the platform which is rated as one of the world’s largest private finance platforms focused on the development of affordable housing.
It needs to be noted that the primary investor in H-Care 3 Scheme 1 & 2 is a wholly owned subsidiary of Abu Dhabi Investment Authority (ADIA).
Mohammed Al Qubaisi, Executive Director, Real Estate Department, ADIA, said, “Through H-CARE Funds, HDFC has established a successful track record of supporting the development of new affordable residential stock across the country. H-CARE Platform Our latest investment in is aimed at supporting its growth as it continues to meet the growing demand for early stage funding of housing projects in India.”
H-Care 3 has the facility to provide equity funding for real estate projects. Also, investors can invest in tech companies (construction tech, fin-tech, sustainability-tech, etc.) that address the needs of the affordable housing ecosystem.
Expected to commit to investments over the next 3-4 years.
HDFC Capital aims to finance the development of one million affordable homes in India through a combination of innovative financing, partnerships and technology with a focus on sustainability.
HDFC Capital is the real estate private equity arm of HDFC Group. HDFC Capital also seeks to foster innovation and adoption of new technologies in the real estate sector by investing and partnering with technology companies.
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