DBJ make first India Real Estate bet through HDFC Capital Affordable Housing Fund
Mumbai, May 28 (TNT) : Development Bank of Japan (DBJ) has made its first real estate investment in India by committing capital to the H-DREAM Fund managed by HDFC Capital Advisors, the real estate private equity arm of the HDFC Group.
The H-DREAM Fund focuses on affordable and mid-income residential housing projects in India and promotes green building standards through the EDGE sustainability framework developed by the International Finance Corporation (IFC).
In a release on Thursday, HDFC Capital said the fund has a target corpus of $500 million with an additional greenshoe option of $500 million and has already secured investor commitments exceeding $350 million.
The investment marks a milestone in DBJ’s overseas real estate strategy and reflects growing Japanese institutional interest in India’s housing and infrastructure sectors.
“The India–Japan relationship is a trusted partnership based on strong institutional cooperation,” said Deepak Parekh, Non-Executive Chairman, HDFC Capital, said, that DBJ’s first real estate investment in India reinforces long-term investor confidence in the country.
DBJ said the investment would support sustainable development in India’s real estate market while helping diversify its overseas real estate portfolio.
HDFC Capital CEO Vipul Roongta said “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.”
The investment has been routed through HDFC Capital’s offshore feeder fund structure established under the International Financial Services Centres Authority (IFSCA) framework at GIFT City in Gujarat.
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