The initial closing for Programme 2 of the HDFC Capital Inexpensive Real Estate Fund – 3 (H-CARE 3) has been successfully completed, raising $376 million, according to HDFC Capital, the real estate PE division of HDFC Ltd.
According to a statement from HDFC Capital, the sponsor and investor have pledged $376 million to the H-CARE 3 Scheme 2. In a statement, HDFC said that when H-CARE 3 Scheme 2 is merged with H-CARE 3 Scheme 1 & HDFC Capital Affordable funds for Real Estate- 1 and 2, which were brought up in 2016 and 2017 respectively, it creates a $3.1 billion financing platform that was rated as “one of the world ‘s biggest private finance platforms focused on the construction of affordable housing.”
The main investor in H-CARE 3 Schemes 1 and 2 is a wholly-owned subsidiary of the ADIA (Abu Dhabi Investment Authority). H-CARE 3 will offer flexible, long-term funding for the duration of the project to affordable & middle-class housing developments, including early-stage investment.
H-CARE 3 will also invest in companies in the technology sector (such as construction technology, sustainability technology, fintech, and so on). involved in the housing ecosystem for low-income people.
HDFC Ltd. will be the sponsor of H-CARE 3 Programmes 1 and 2, while HDFC Capital will act as the investment advisor.
Chairman of HDFC, Deepak Parekh, stated “Despite recent setbacks in the international macro landscape, I remain positive about the need for Indian properties. India is expected to continue to be one of the world’s fastest-growing major economies, and as the direction of the global economy changes, housing will become an even more crucial driver of growth.”
One of the earliest companies in India to invest in projects for middle-class and inexpensive housing was HDFC Capital. Thanks to collaborations with renowned developers and the backing of top international investors like ADIA, the HDFC Capital network is well on its way to financing one million affordable houses in India over the next several years, he added.
