DBJ Partners With HDFC Capital to Invest in Housing Projects
The Development Bank of Japan has joined forces with HDFC Capital to invest in a real estate fund aimed at raising $1 billion, designated for developing affordable and middle-income housing projects in India.
HDFC Capital announced that the Development Bank of Japan Inc (DBJ) has completed its inaugural real estate investment in India.
DBJ has allocated funds to the HDFC Capital Development of Real Estate Affordable and Mid-Income Fund (H-DREAM Fund), overseen by HDFC Capital Advisors Ltd.
The H-DREAM Fund aims for a total fund size of $500 million, with an additional greenshoe of $500 million, and has already secured investor commitments surpassing $350 million.
Also Read: India and South Korea Deepen Defense Cooperation With MoUs
In August of the previous year, IFC pledged to invest as much as $150 million as a cornerstone equity investment in the H-DREAM Fund, with HDFC Capital serving as the real estate private equity division of the HDFC Group.
Deepak Parekh, Non-Executive Chairman, HDFC Capital says, "The India-Japan relationship is a trusted partnership based on strong institutional cooperation. India has seen increased participation by Japanese investors in its financial and real estate sectors."
“As a government-owned institution, DBJ's first investment in real estate in India is significant for us and reinforces long-term investor confidence in the country," he adds.
HDFC Capital ranks among the largest private equity funds in India's real estate sector, concentrating on affordable and mid-income residential properties. Its resources merge to establish a platform exceeding $4.5 billion. H-DREAM Fund prioritizes the creation of affordable, environmentally-friendly housing for middle-income families.
Also Read: Adani Green to Develop Storage Project in Andhra Pradesh
DBJ stated that this investment will aid in the sustainable growth of the Indian real estate market, which is currently experiencing a housing deficit.
"We are delighted to partner with DBJ in its first real estate investment in India", Vipul Roongta, CEO, HDFC Capital, says.
"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" .
Also Read: Bettrlabs Launches AI-Native R&D Platform Labs.new
DBJ's investment in the H-DREAM Fund is executed through HDFC Capital's offshore feeder fund setup, created under the International Financial Services Centres Authority (IFSCA) guidelines at the Gujarat International Finance Tec-City (GIFT City). DBJ is a Japanese financial entity offering comprehensive investment and lending services to businesses and initiatives.