ADIA invests in $1bn India real estate funds

India’s HDFC Capital Advisors has achieved the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund – 2

Abu Dhabi, UAE.
Abu Dhabi, UAE.

India’s HDFC Capital Advisors, a wholly-owned subsidiary of HDFC Ltd, has achieved the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund – 2, with the support of the Abu Dhabi Investment Authority (ADIA).

This will be combined with the HDFC Capital Affordable Real Estate Fund – 1, H-CARE-1, which was raised last year, to create a $1bn platform targeting affordable and mid-income residential projects in India’s leading fifteen cities.

ADIA is the primary investor, through a wholly-owned subsidiary, in both H-CARE-1 and H-CARE-2. Commitments of $550m have been made for the H-CARE-2 Fund.

The primary objective of the platform, according to a statement from HDFC Capital Advisors, is to provide long term, equity and mezzanine capital to marquee developers at the land and pre-approval stage for the development of affordable and mid-income housing, in line with the Indian Government’s goal of increasing overall housing supply, including the ‘Housing for All by 2027’ initiative.

Khadem Al Remeithi, the executive director of ADIA’s Real Estate and Infrastructure Department, said: "India’s housing market presents a compelling investment opportunity driven by the country’s continued economic growth and backed by supportive government initiatives.

“Our investment in HDFC’s platform aims to meet the strong demand for early-stage financing of housing projects and encourage the continued growth of the affordable and mid-income residential sector."

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