Mumbai (Maharashtra) [India], Dec 21 (ANI): HDFC Capital Advisors has successfully achieved the initial close of its second affordable housing fund, the HDFC Capital Affordable Real Estate Fund - 2 (H-CARE-2).
This will be combined with the HDFC Capital Affordable Real Estate Fund - 1 (H-CARE-1) raised in 2016 to create a USD one billion platform targeting affordable and mid-income residential projects in India's leading 15 cities.
"Affordable housing is a critical component of quality urban infrastructure as also a growth driver for the real estate industry in India. H-CARE 1 and H-CARE 2 will look to partner with developers to form long term platforms focusing on affordable and mid income housing," said VC and CEO, HDFC Ltd., Keki Mistry.
The primary objective of the platform 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 India.
This aligns with the Government of India's goal to increase overall housing supply, including 'Housing for All by 2022' initiative.
"These funds will play a significant role in progressing towards the 'Housing for All by 2022' objective of the government. Affordable housing will not only act as a growth driver for the real estate industry in India but will also be a catalyst for GDP growth. The current lack of flexible, long-term capital is one of the key challenges facing developers of affordable and mid income housing in India. The H-CARE funds will focus on providing leading developers access to financing at attractive rates and on flexible terms," said chairman HDFC Ltd., Deepak Parekh.
The primary investor in both H-CARE-1 and H-CARE-2 is a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).