about $2 billion to improve housing affordability in the South Asian nation through its third fund focused on this segment. The fund, titled HDFC Capital Affordable Real Estate Fund – 3, will be one of the largest funds raised in the residential real estate sector anywhere in the world. With investors already committing over $1.22 billion, the fund has already achieved its first close according to reports.
“In India, housing will play an even more important role as a catalyst for growth with increased demand for affordable and mid-income housing. Combined with India’s growth prospects, I have never been as optimistic about the housing sector as I am today,” Deepak Parekh, Chairman of HDFC, said.
As homebuyers continue to lack access to flexible, long-term capital, the fund is focused on providing developers with access to financing on flexible terms. Over the past six years, HDFC Capital’s funds have supported the development of 180,000 houses and over 78 residential projects over 78 residential projects across India.
“With this new fund, we are becoming a platform for the entire affordable housing ecosystem by supporting not only realty projects through equity and mezzanine financing, but also to vendors and technology companies that help push the efficiency of such projects higher,” Vipul Roongta, Managing Director and chief executive at HDFC Capital, told the Economic Times.
